I was wondering thoughts on refinancing parent plus loans. My interest rates are between 6-7.35% but a decent chunk (1/3) are at 7.35%. My kids just graduated so I have 10 years of repayment still.
My FICO 8: EX: 833, EQ: 716 TU: 836
I owe approx $64K. I want to buy a house in 1-2 years. My current SL payment is $765- which is manageable... I’ve been paying $800 but toss around trying to pay off in 5 years so maybe getting a PT job that goes just to these loans- but honestly - as anyone else would feel, that’s not super appealing since my day job is busy- and I like to have a life... but would also love to be debt free ASAP and that’s my only debt. Because my kids have just now graduated- repayment schedule is 10 more years.
So- obviously having a lower interest rate than 7.35% is appealing... and is likely possible even if I were to extend the timeframe to 20-25 years (lowering payments for DTI for mortgage). Maybe that’s a bad idea??
Also- because of the 2 kids- it creates 2 installment loans on my credit report and refinancing would bring it down to 1 unless I kept them separate. Is this going to hurt my credit score?
My career is pretty solid- income is around $110Kish - sometimes more or less - and I’m not super worried about job loss... Again ideally I would like to payoff in 5 years but just trying to set myself up for mortgage approval, payoff debt, protect/increase my credit score and pay less on interest if possible. Just trying to figure out best course of action... thank you!!
FICO 8
EQ: 843
TU: 833
EX: 836
FICO Mortgage 5,4 & 2
EQ: 805
TU: 807
EX: 826
FICO Auto 5,4 & 2
EQ: 815
TU: 849
EX: 841
FICO Auto 8
EQ: 863
TU: 863
EX: 857
FICO Bankcard 8
EQ: 863
TU: 862
EX: 856
FICO 10
EQ: 833
TU: 832
EX: 807
Negatives:
Hard Inquiries:
EQ: 3 (1/21, 2/21, 4/21)
TU: 3 (1/21, 2/21, 4/21)
EX: 3 (1/21, 2/21, 4/21)
AAoA:9 yrs 7 mo
AoOA: 19 yrs 6 mo