My wife owes around $60K to Sallie Mae (private loans). I'm looking to refi, as I don't care for their terms. We have an approval from Wells Fargo, but I'm not impressed by the interest rates they are offering--in spite of the fact that her credit-worthy mother co-signed for her.
I can either accept 7% variable or 11.3% fixed. The fixed rate seems outrageous to me. My concern, however, is that interest rates--at a historic low--will begin creeping up in the months ahead. I'm thinking that when that happens, the variable rate will be much less compelling (obviously), and any fixed rate offers we might receive would be even higher. I'm wondering if I should just bite the bullet and accept th 11.3% and the "security" it provides...?
What would you do?
