Hello everyone,
I was thinking about refinancing an AES loan that's variable interest (currently 5.030%) with a principal of $34, 365 and12 years left on the loan at $313 monthly payments. My current score is 699 (Fico 8). Should I try and wait for better interest rates? I've seen/gotten reapproved from sites like sofi-credible and similar roles for loans ranging from 6.45% for 7 years with a monthly payment of $508 and lowest (longer term) through a credit union which is 4.97% for 10 years at $360.82.
In 11 months I will have fully paid of my car which I'm paying $840 a month (payments are actually $336 but I pay extra) and starting jan 2023 and an extra $226 a month as I'm going on my wife health insurance.
Just asking for some advice to see what people think I should do. Thank you very much!
@RSX wrote:i wouldn't bother with a ReFi now - 5% is not that bad at this time
the best way to lower your Total Interest Paid is to pay the loan early - which it sounds like you are gearing up to do, once the car is paid off
or - if your car loan has a lower Interest %, then swing the funds over to this loan until it is gone - then pay the car down
continue with that plan - make extra payments whenever you can - even $50 makes a difference - then when the car is paid off, crush this loan with those extra dollars you have each month
Thank you for the advice yeah the car loan has a higher interest rate than the loan so that's why I have the extra funds going there first then tackle the student loan.