Loans Serivces – Page 2

If you’re a veteran with a VA home loan, there’s a simple way to refinance that could save you money.

A VA streamline refinance — or VA interest rate reduction refinance loan (IRRRL) — may be able to lower your interest rate, shorten your mortgage term, or shrink your monthly payment, often with no appraisal or credit underwriting.

Here’s what you need to know about VA streamline refinances:

What is a VA streamline refinance (VA IRRRL)?VA streamline refinance loan benefitsDrawbacks of VA streamline refinance loansVA streamline refinance eligibility guidelinesVA IRRRL costsHow to apply for a VA IRRRLIs a VA streamline refinance loan right for you?

What is a VA streamline refinance (VA IRRRL)?

If you’re an active-duty military service member, veteran, or surviving spouse with a VA mortgage, you might be thinking about refinancing to lower the interest rate on your current home loan.

An IRRRL can help you accomplish this by replacing your existing VA loan with a new one that has a different interest rate and monthly payment, and possibly a different term.

What makes this refinance “streamlined” is that it typically requires fewer steps and less paperwork. For instance, the VA doesn’t require an appraisal or credit underwriting for this loan, which means you’ll usually close faster than someone doing a conventional refinance.

Learn More: How Soon You Can Refinance: Typical Waiting Periods By Home Loan

VA streamline refinance rates

Veterans United, a major originator of VA loans, says that the interest rates on VA loans tend to be 0.5% to 1.0% lower than the interest rates on conventional mortgages. And lending statistics from ICE Mortgage Technology show that from January through August 2021, VA loan rates were about 0.3 percentage points lower than conventional loan rates on a 30-year, fixed-rate mortgage.

Good to know: While somewhat helpful, general figures like these won’t tell you what type of mortgage you’ll get the best rate on. Your personalized rate depends on your financial situation and what’s happening in the mortgage market when you apply.

Rates also vary by mortgage lender, loan term, and how much home equity you have. For example, if you have at least 20% equity and can pass underwriting and an appraisal, you might find a better interest rate and lower APR by refinancing into a conventional loan, even if you qualify for an IRRRL.

Getting pre-approved with multiple lenders will give you the best idea of what rates you qualify for. It’ll also allow you to compare loan costs and get a taste of the lender’s customer service before committing to the mortgage approval process. While Credible doesn’t offer VA streamline refinances, we can help you find a great rate if you’re refinancing a conventional loan.

Find out if refinancing is right for you

Actual rates from multiple lenders – In 3 minutes, get actual prequalified rates without impacting your credit score.Smart technology – We streamline the questions you need to answer and automate the document upload process.End-to-end experience – Complete the entire origination process from rate comparison up to closing, all on Credible.Find My Refi Rate
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VA streamline refinance loan benefits

A VA streamline refinance has several appealing advantages:

Competitive rates: VA loan rates tend to be similar to or slightly less than conventional loan rates.No private mortgage insurance: Even with less than 20% equity, there’s no PMI or equivalent for VA loans like there is for conventional loans and FHA loans.No appraisal: A no-appraisal refinance will save you a few hundred dollars in upfront costs. It also means you may be able to refinance a home that’s lost value.Less documentation: A VA streamline refinance doesn’t require underwriting, so you may be able to forgo gathering bank statements and tax returns for lenders.Closing cost financing: Avoid out-of-pocket costs by rolling closing costs into your new loan.Quick closing: No underwriting and no appraisal means it likely won’t take as long to refinance your home.No occupancy requirement: You can do a streamline refinance on a home you no longer occupy as your primary residence.Catch up if you’ve fallen behind: If your VA loan is past due, you may be able to use an IRRRL with credit underwriting to catch up on overdue payments, pay off late fees, and get into a more affordable loan that will stabilize your situation.Good to know: The VA’s lending guidelines don’t require credit underwriting or an appraisal for an IRRRL, but they also don’t forbid it. Lenders may still want to check your credit or order an appraisal, and if they do, they’re allowed to charge you for those costs.

Drawbacks of VA streamline refinance loans

Even though a VA streamline refinance is meant to be money-saving and efficient, you should understand how its drawbacks might affect you:

Funding fee: You’ll pay a funding fee each time you get a VA loan. The fee is 0.5% of the loan amount for an IRRRL.Existing VA loan required: If you have a conventional loan or FHA loan, you’re not eligible for an IRRRL. However, you may qualify for a VA cash-out refinance.Closing costs: Expect to pay fees for loan origination, title insurance, and local government requirements.Restarting your loan term: Many borrowers choose the same loan term when they refinance. If you currently have a 30-year loan that you’ve been paying for four years, you’ll be mortgage-free in 26 years. But if you refinance into a new 30-year loan, you’ll have to start over.No cash out: Borrowers are not allowed to cash out any equity with an IRRRL unless the money is a reimbursement for energy-efficient home improvements completed within 90 days of closing and costing no more than $6,000.Waiting period: You’re not eligible for an IRRRL until you’ve had your existing VA loan for 210 days and made six consecutive monthly payments.Tip: You can avoid restarting your loan term by refinancing into a shorter term or prepaying principal on your new mortgage. If you refinance into a shorter term and your new payment is at least 20% higher than your existing payment, you’ll have to go through underwriting.

Compare Your Options: 3 Ways to Refinance a VA Loan

VA streamline refinance eligibility guidelines

Qualifying for a VA streamline refinance can be easier than qualifying for other refinance loans. Here are the key criteria and a brief explanation of each one:

RequirementDescriptionYou’re refinancing a VA loanYou can’t use a VA IRRRL to refinance a conventional, FHA, or USDA loan.You’re no more than 30 days behind on paymentsIf you’re more than 30 days behind, you’ll have to go through underwriting.The home has been your primary residenceIt’s OK if your home is not your primary residence anymore or won’t be after you refinance, as long as it was previously.Your new loan won’t push back your payoff date by more than 10 yearsFor example, if you have 12 years left on your VA loan, your new loan term can’t be longer than 22 years. That means you wouldn’t be able to refinance into a 30-year loan. Your new loan will have a lower interest rateOne exception: You can refinance into a higher rate if you’re refinancing an adjustable-rate mortgage (ARM).You don’t want to cash out any equityThere’s no cash-out refinance option with an IRRRL. Look into a VA cash-out refinance instead.

VA IRRRL costs

The closing costs for a VA streamline refinance are similar to the closing costs for other VA loans. However, you likely won’t have to pay for an appraisal, which will save you a few hundred dollars. Here are some of the closing costs often associated with a VA IRRRL:

Closing costs typically range from 2% to 5% of the loan amount. Most borrowers pay an origination fee, title insurance fee, and deed recording fee. You may also owe local taxes, which are inexpensive in some areas and quite costly in others. And some borrowers choose to prepay mortgage interest through points in exchange for a lower interest rate.

A closing cost unique to VA loans is the VA funding fee: on an IRRRL, the fee is 0.5%, or $500 for every $100,000 borrowed. You may be exempt if you’re receiving payments for a service-connected disability or you’ve earned a Purple Heart.

Rolling closing costs into your VA IRRRL

An IRRRL allows you to roll your closing costs into the loan. You might benefit from this option if

you stand to save a lot from refinancing but don’t have cash on hand. It can also be a smart move if you’re planning to sell your home the next time you get permanent change of station (PCS) orders. It probably doesn’t make sense to pay a lot up front for a loan you’ll have short term.

On a 30-year mortgage, here’s how much more you would pay over the life of the loan by rolling $12,000 in closing costs (4% of $300,000) into the loan instead of paying them up front.

Interest ratePay closing costs up frontRoll closing costs into loanAdditional cost3%$12,000.00$18,345.30$6,345,304%$12,000.00$20,721.16$8,721.165%$12,000.00$23,388.64$11,388.64

While inflation is normally seen as a bad thing, it can be good for mortgage debtors with fixed interest rates. As years pass, even modest price and income inflation can make your mortgage debt feel less expensive.

In other words, while an extra $6,300 may sound like a lot today, it’ll feel like less and less each year due to inflation. Still, the higher your interest rate, the less you may want to borrow.

How to apply for a VA IRRRL

If you apply for a VA IRRRL, the process will look something like this:

Identify reputable lenders that offer a VA streamline refinance.Submit a pre-approval application online or by phone with at least three lenders.Compare your Loan Estimate from each company, looking for the best terms for your situation.Decide how many points to pay, if any, to lower your rate.When you’re happy with current interest rates, lock your rate.Submit any supporting documents your lender asks for. Your lender will usually be able to obtain your VA loan certificate of eligibility (COE) for you.Sign the paperwork to close on your loan.

Read: How Often Can You Refinance Your Mortgage?

Is a VA streamline refinance loan right for you?

Refinancing an existing home loan into a new loan may be a good idea if you’ll be able to lower your interest rate by at least one percentage point. It also makes sense if you expect to keep your new loan long enough to break even on closing costs.

A VA streamline refinance in particular may be right for you if you’ve lost your job, your credit score has dropped, your income has decreased, or your home’s value has declined. Since lenders aren’t required to order an appraisal or perform credit underwriting for an IRRRL, this type of refinance could help you keep your home if times have gotten tough.

Tip: If you’re struggling to pay your mortgage, contact the Department of Veterans Affairs. They will assign a loan technician to help you.

If you plan to move soon or can’t lower your rate, refinancing may not help you. And if you have at least 20% equity, good credit, and a steady income, it’s worth comparing quotes for both an IRRRL and a conventional refinance.

No matter which type of refinance you decide to pursue, comparing offers from multiple lenders can help you save money. While Credible doesn’t offer VA loans, we can help you see customized, prequalified rates for a conventional refinance — checking rates with us won’t impact your credit score.

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Keep Reading: How to Refinance Your Mortgage With Bad Credit

The post VA Streamline Refinance: How It Works and When to Get One appeared first on Credible.

Kevin Smith

corazoncrm.org

Loans Serivces

How to Lower Credit Card Interest Rates: 4 Options

November 1, 2021 Kevin Smith

A high-interest credit card can be a major burden on your finances. The average credit card interest rate was 14.75% as of February 2021, according to the Federal Reserve — which could translate into steep interest charges if you only pay the minimum payment each month.

However, there are ways to potentially lower your credit card interest rate, which could help you save money while paying off your balance.

Here’s how to lower credit card your interest rate:

Check your credit scoreCall your card issuer and askApply for a balance transfer cardTake out a personal loan

1. Check your credit score

Your credit score helps determine what kind of interest rates you qualify for. In general, the better your credit score, the lower your rate.

If you’d like to get a lower interest rate, you’ll likely need good to excellent credit — a good credit score is usually considered to be 700 or higher. This is why it’s a good idea to check your credit before making the request so you know where you stand.

Tip: You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your credit score.

Learn More: How Personal Loans Impact Your Credit Score

2. Call your card issuer and ask

One way to possibly get a lower credit card rate is to simply ask your credit card issuer for a reduction. Generally, credit card issuers are friendlier to these types of requests if you have good credit and are a good customer who pays your bills on time.

When you make the call, a few points to mention include:

How long you’ve been with the companyYour history of on-time paymentsWhether your credit score has gone upWhether you’ve received better offers from other credit card companiesTip: When you’re speaking to your customer service representative, respectfully explain the reason for your call (being nice and pleasant goes a long way!). Ask about lowering your interest rate and what steps you need to take in order to get that taken care of.

Also keep in mind that your request might not be approved. If this happens, don’t be discouraged — ask what you need to do to lower your interest rate and when you can request a reduced rate again in the future.

Check Out: How to Get Out of Credit Card Debt

3. Apply for a balance transfer card

A balance transfer card could be a good option if your current credit card company doesn’t approve you for a lower interest rate on your card. With a balance transfer card, you can move your balance from one card to another one with a lower rate.

Tip: Some balance transfer cards come with 0% APR introductory offers. This means you could avoid paying interest if you can repay your balance before this period ends. However, keep in mind that if you can’t pay off the card in time, you could get stuck with hefty interest charges.

Learn More: Personal Loan vs. Credit Card

4. Take out a personal loan

Another option is taking out a personal loan to pay off your credit card debt — a process known as debt consolidation. Personal loans often have lower credit card interest rates than credit cards, which means you could save money on interest charges while repaying your debt.

Tip: You’ll typically need good to excellent credit to get approved for a personal loan as well as to qualify for a low interest rate. While some lenders offer debt consolidation loans for bad credit, these personal loans often come with higher interest rates compared to good credit loans.

If you’re struggling to get approved, consider applying with a cosigner. Not all lenders allow cosigners on personal loans, but some do. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

If you decide to take out a personal loan, it’s important to think about how much that loan will cost you. This way, you can be prepared for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator below.

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Balance transfer card vs. personal loan

Balance transfer cards and personal loans are both options to consolidate credit card debt and hopefully save money on interest along the way. If you’re considering a balance transfer credit card vs. personal loan, here are a few pros and cons of each to keep in mind:

Pros of balance transfer credit cards

0% APR: Some balance transfer credit cards come with a 0% APR introductory offer, which means you can avoid paying interest if you pay off your balance before this period ends.Could help build your credit: If you make all of your payments on time, you might see your credit improve — which could help you qualify for better rates in the future.Rewards or perks: Depending on the card you choose, you might have access to various rewards or perks, such as cash back or points.

Check Out: How to Pay Off Credit Card Debt Fast

Cons of balance transfer credit cards

Balance transfer fees: Most cards charge a balance transfer fee — generally from 3% to 5% — that could increase your balance.Higher interest rates: Credit cards generally have higher interest rates than personal loans. While you might be able to take advantage of a 0% APR introductory offer — depending on the card — carrying a balance beyond this period could lead to steep interest charges if you don’t pay off the card by your due date each month.Might be tempting to rack up a balance: A balance transfer card is still a credit card. Even if you pay your initial balance off, it could be tempting to rack up a balance again.

Learn More: How Debt Consolidation Loans Can Help Your Credit Score

Pros of personal loans

Lower interest rates: Personal loan rates are usually lower compared to credit cards. This could save you money on interest charges and even help you pay off your loan faster.Fixed monthly payments: Personal loans generally have fixed interest rates, which means your monthly payments will stay the same throughout the life of the loan.Options for poor or fair credit: While many personal loan lenders require good to excellent credit, there are others that offer personal loans for bad credit.

Check Out: Small Personal Loans: Compare Top Lenders Today

Cons of personal loans

Might come with fees: Some lenders charge fees on personal loans, such as origination or late fees. This can add to your overall loan cost.Can have larger payments: Depending on your repayment terms, you might end up with higher monthly payments on a personal loan compared to a credit card. Before you sign for a loan, be sure your new payments will fit comfortably in your budget.No rewards: Unlike credit cards, personal loans don’t come with any rewards.

Learn More: How to Check If a Personal Loan Company Is Legitimate

How to take out a personal loan

If you decide to take out a personal loan to help reduce how much you pay in credit card interest, follow these four steps:

Check your credit. Like with credit cards, personal loan lenders will review your credit to determine your creditworthiness as well as what rates you qualify for. To see what shape your credit is in before you apply, use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your credit score.Compare lenders and pick a loan option. Be sure to consider as many lenders as possible to find the right loan for your needs. Consider not only interest rates but also repayment terms and any fees charged by the lender. After researching lenders, choose the loan option that works best for you.Complete the application. Once you’ve picked a personal loan lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs.Get your funds. If you’re approved, the lender will have you sign for the loan so the money can be released to you. The time to fund for a personal loan is usually about one week — though some lenders will fund loans as soon as the same or next business day after approval. There are also lenders that will pay your creditors directly if you’d prefer.

Before you take out a personal loan, remember to consider as many lenders as you can to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes

LenderFixed ratesLoan amountsMin. credit scoreLoan terms (years)

Credible Rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
9.95% – 35.99% APR$2,000 to $35,0005502, 3, 4, 5*Fixed APR:
9.95% – 35.99% APRVariable APR:
N/AMin. credit score:
550Loan amount:
$2,000 to $35,000**Loan terms (years):
2, 3, 4, 5*Time to fund:
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)Fees:
Origination feeDiscounts:
AutopayEligibility:
Available in all states except CO, IA, HI, VT, NV NY, WVCustomer service:
Phone, emailSoft credit check:
YesLoan servicer:
AvantLoan Uses:
Debt consolidation, emergency expense, life event, home improvement, and other purposesMin. Income:
$1,200 monthly

View details>
6.79% – 17.99% APR$5,000 to $35,0007401, 2, 3, 4, 5Fixed APR:
6.79% – 17.99% APRVariable APR:
N/AMin. credit score:
740Loan amount:
$5,000 to $35,000Loan terms (years):
1, 2, 3, 4, 5Time to fund:
Next business dayFees:
No prepayment penaltyDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
PhoneSoft credit check:
YesMin. Income:
Does not discloseLoan Uses:
Debt consolidation, home improvement, self-employment, and other purposes

View details>
4.99% – 35.99% APR$5,000 to $35,0006002, 3, 4, 5Fixed APR:
4.99% – 35.99% APRVariable APR:
N/AMin. credit score:
600Loan amount:
$2,000 to $50,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 1 – 3 business days after successful verificationFees:
Origination feeDiscounts:
NoneEligibility:
Available in all states except DC, IA, VT, and WVCustomer service:
PhoneSoft credit check:
YesLoan servicer:
Best Egg and Blue Ridge BankMin. Income:
NoneLoan Uses:
Credit card refinancing, debt consolidation, home improvement, and other purposes

View details>
6.99% – 24.99% APR$2,500 to $35,0006603, 4, 5, 6, 7Fixed APR:
6.99% – 24.99% APRMin. credit score:
660Loan amount:
$2,500 to $35,000Loan terms (years):
3, 4, 5, 6, 7Time to fund:
As soon as the next business day after acceptanceFees:
Late feeDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
PhoneSoft credit check:
YesLoan Uses:
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding

View details>
7.99% – 29.99% APR$10,000 to $50,000Not disclosed by lender2, 3, 4, 5Fixed APR:
7.99% – 29.99% APRMin. credit score:
Does not discloseLoan amount:
$10,000 to $50,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 2 business daysFees:
Origination feeDiscounts:
NoEligibility:
Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WYCustomer service:
PhoneSoft credit check:
YesMin. Income:
NoneLoan Uses:
Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes

View details>
7.04% – 35.89% APR$1,000 to $40,0006003, 5Fixed APR:
7.04% – 35.89% APRMin. credit score:
600Loan amount:
$1,000 to $40,000Loan terms (years):
3, 5Time to fund:
Usually takes about 2 daysFees:
Origination feeDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
Phone, emailSoft credit check:
YesLoan servicer:
LendingClub BankMin. Income:
NoneLoan Uses:
Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes

View details>
15.49% – 35.99% APR$2,000 to $36,5005802, 3, 4Fixed APR:
15.49% – 35.99% APRMin. credit score:
580Loan amount:
$2,000 to $36,500Loan terms (years):
2, 3, 4Time to fund:
As soon as the next business dayFees:
Origination feeDiscounts:
AutopayEligibility:
Available in all states except NV and WVCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
$20,000Loan Uses:
Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes

View details>
2.49% – 19.99% APR$5,000 to $100,0006602, 3, 4, 5, 6, 7
(up to 12 years for home improvement loans)Fixed APR:
2.49% – 19.99% APRMin. credit score:
660Loan amount:
$5,000 to $100,000Loan terms (years):
2, 3, 4, 5, 6, 7*Time to fund:
As soon as the same business dayFees:
NoneDiscounts:
AutopayEligibility:
Available in all states except RI and VTCustomer service:
Phone, emailSoft credit check:
NoLoan servicer:
LightStreamMin. Income:
Does not discloseLoan Uses:
Credit card refinancing, debt consolidation, home improvement, and other purposes

View details>
6.99% – 19.99% APR1$3,500 to $40,0002660
(TransUnion FICO®️ Score 9)3, 4, 5, 6, 7Fixed APR:
6.99% – 19.99% APR1Min. credit score:
660
(TransUnion FICO®️ Score 9)Loan amount:
$3,500 to $40,0002Loan terms (years):
3, 4, 5, 6Time to fund:
Many Marcus customers receive funds in as little as three daysFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
PhoneSoft credit check:
YesLoan servicer:
Goldman SachsMin. Income:
$30,000Loan Uses:
Credit card refinancing, debt consolidation, home improvement, major purchase, and other purposes

View details>
18.0% – 35.99% APR$1,500 to $20,000None2, 3, 4, 5Fixed APR:
18.0% – 35.99% APRMin. credit score:
NoneLoan amount:
$1,500 to $20,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as the same day, but usually requires a visit to a branch officeFees:
Origination feeDiscounts:
NoneEligibility:
Must have photo I.D. issued by U.S. federal, state or local governmentCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
Does not disclose

View details>
5.99% – 17.99% APR$600 to $50,000
(depending on loan term)6701, 2, 3, 4, 5Fixed APR:
5.99% – 17.99% APRMin. credit score:
670Loan amount:
$600 to $50,000*Loan terms (years):
1, 2, 3, 4, 5Time to fund:
2 to 4 business days after verificationFees:
NoneDiscounts:
NoneEligibility:
Does not discloseCustomer service:
Phone, emailSoft credit check:
NoMin. Income:
Does not discloseLoan Uses:
Debt consolidation, home improvement, transportation, medical, dental, life events

View details>
6.95% – 35.99% APR$2,000 to $40,0006403, 5Fixed APR:
6.95% – 35.99% APRMin. credit score:
640Loan amount:
$2,000 to $40,000Loan terms (years):
3, 5Time to fund:
As soon as one business dayFees:
Origination feeDiscounts:
NoneEligibility:
Available in all states except IA, ND, WVCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
NoneLoan Uses:
Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes

View details>
5.99% – 18.83% APR$5,000 to $100,000Does not disclose2, 3, 4, 5, 6, 7Fixed APR:
5.99% – 18.83% APRMin. credit score:
Does not discloseLoan amount:
$5,000 to $100,000Loan terms (years):
2, 3, 4, 5, 6, 7Time to fund:
3 business daysFees:
NoneDiscounts:
AutopayEligibility:
Available in all states except MSCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
Does not discloseLoan Uses:
Solely for personal, family, or household uses

View details>
8.93% – 35.93% APR7$1,000 to $50,0005603 to 5 years 8Fixed APR:
8.93% – 35.93% APR7Min. credit score:
560Loan amount:
$1,000 to $50,000Loan terms:
3 to 5 years 8Time to fund:
Within one day, once approved9Loan types:
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchasesFees:
Origination feeDiscounts:
AutopayEligibility:
A U.S. citizen or permanent resident; not available in DC, SC, WVCustomer service:
Phone, emailSoft credit check:
Yes

View details>
5.94% – 35.97% APR$1,000 to $50,0005602, 3, 5, 6Fixed APR:
5.94% – 35.97% APRMin. credit score:
560Loan amount:
$1,000 to $50,000*Loan terms (years):
2, 3, 5, 6Time to fund:
Within a day of clearing necessary verificationsFees:
Origination feeDiscounts:
AutopayEligibility:
Available in all states except West VirginiaCustomer service:
EmailSoft credit check:
YesMin. Income:
Does not discloseLoan Uses:
Debt consolidation, credit card refinancing, home improvement, and other purposes

View details>
6.46% – 35.99% APR4$1,000 to $50,00055803 to 5 years4Fixed APR:
6.46% – 35.99% APR4Min. credit score:
580Loan amount:
$1,000 to $50,0005Loan terms (years):
3 to 5 years4Time to fund:
As fast as 1 business day6Fees:
Origination feeDiscounts:
NoneEligibility:
Available in all 50 statesCustomer service:
Phone, emailSoft credit check:
YesMin. Income:
$12,000Loan Uses:
Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposesCompare rates from these lenders without affecting your credit score. 100% free!

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Should you close your credit card?

After you’ve paid off a credit card, you might consider closing it. However, keep in mind that if you close a credit card account, you might see your credit score drop. This is because a closed account could:

Raise your credit utilization ratio, as you might have less available credit compared to how much you oweLower the average age of your credit accounts, especially if you’ve had the account for an extended period of time

However, if you continue making payments on time on your other credit accounts, your score will likely bounce back within a few months.

Tip: Ultimately, whether to close an account depends on your individual circumstances. For example, if you feel that keeping a credit card account open could lead you into more debt, then it might be better to close the account and deal with the potential credit score changes.

Keep Reading: Pay Off Credit Card Debt ASAP With a Personal Loan
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.

The post How to Lower Credit Card Interest Rates: 4 Options appeared first on Credible.

Kevin Smith

corazoncrm.org

Loans Serivces

How to Pay Off $10,000 in Credit Card Debt

November 1, 2021 Kevin Smith

Facing a large amount of credit card debt can feel overwhelming, especially since it might take a while to pay off. If you have $10,000 in credit card debt, it could take over a decade to repay if you make only minimum payments.

However, there are a few strategies that could make it easier to pay off $10,000 in credit card debt.

Here are four ways to pay off $10,000 in credit card debt:

Consolidate your debtWork with your credit card companyChoose a debt payoff strategyReevaluate your current spending

1. Consolidate your debt

Depending on your credit, consolidating your credit card debt might get you a lower interest rate — this could save you money on interest as well as potentially help you pay off your debt more quickly.

Here are a few options for consolidating credit card debt:

Take out a credit card consolidation loan

Best if: You have multiple high-interest credit cards to consolidate.

A credit card consolidation loan is a type of personal loan specifically used to consolidate credit card debt. If you have good to excellent credit, you might qualify for a lower interest rate than what you’re currently paying — this could save you hundreds or even thousands of dollars on interest charges.

Or you could opt to extend your repayment term to lower your monthly payments and lessen the strain on your budget. Just keep in mind that choosing a longer term means you’ll pay more in interest over time.

For example, here’s how much someone might save by consolidating their credit card debt with a personal loan:

Pros

Fixed rates: Personal loan rates are fixed, which means your payments will stay the same throughout the life of the loan. Additionally, personal loans usually have lower interest rates compared to credit cards.Could get a lower interest rate: If you have good credit, you might get a lower interest rate with a credit card consolidation loan.Fast loan process: Many personal loan lenders provide a quick and easy application process. If you’re approved, you’ll generally have your funds within a week — though some lenders will fund loans as soon as the same or next business day after approval.

Cons

Fewer options for poor or fair credit: You’ll typically need good to excellent credit to qualify for a personal loan — especially if you want to get a lower interest rate. There are also several lenders that offer personal loans for bad credit, but these loans usually come with higher interest rates compared to good credit loans.Might come with fees: Some lenders charge fees on personal loans, such as origination or late fees.No perks or rewards: Personal loans don’t offer the perks and rewards that sometimes come with credit cards.Tip: If you have bad credit and are struggling to get approved for a personal loan, consider applying with a creditworthy cosigner to improve your chances. Not all lenders allow cosigners on personal loans, but some do.

Even if you don’t need a cosigner to qualify, having one might get you a lower interest rate than you’d get on your own.

If you decide to take out a personal loan to consolidate credit card debt, be sure to consider as many lenders as possible to find the right loan for your needs.

Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.

LenderFixed ratesLoan amountsMin. credit scoreLoan terms (years)

View details>
4.99% – 35.99% APR$2,000 to $50,0006003, 5Fixed APR:
4.99% – 35.99% APRVariable APR:
N/AMin. credit score:
600Loan amount:
$2,000 to $50,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 1 – 3 business days after successful verificationFees:
Origination feeDiscounts:
NoneEligibility:
Available in all states except DC, IA, VT, and WVCustomer service:
PhoneSoft credit check:
YesLoan servicer:
Best Egg and Blue Ridge BankMin. Income:
NoneLoan Uses:
Credit card refinancing, debt consolidation, home improvement, and other purposes

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7.99% – 29.99% APR$10,000 to $35,000Not disclosed by lender2, 3, 4, 5Fixed APR:
7.99% – 29.99% APRMin. credit score:
Does not discloseLoan amount:
$10,000 to $50,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 2 business daysFees:
Origination feeDiscounts:
NoEligibility:
Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WYCustomer service:
PhoneSoft credit check:
YesMin. Income:
NoneLoan Uses:
Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes

View details>
5.99% – 24.99% APR$5,000 to $40,0006002, 3, 4, 5Fixed APR:
5.99% – 24.99% APRMin. credit score:
600Loan amount:
$5,000 to $40,000Loan terms (years):
2, 3, 4, 5Time to fund:
As soon as 2 – 5 business days after verificationFees:
Origination feeDiscounts:
NoneEligibility:
Available in all states except MA, NV, and OHCustomer service:
Phone, email, chatSoft credit check:
YesMin. Income:
NoneLoan Uses:
Debt consolidation and credit card consolidation only

View details>
8.93% – 35.93% APR7$1,000 to $20,0005603, 5Fixed APR:
8.93% – 35.93% APR7Min. credit score:
560Loan amount:
$1,000 to $50,000Loan terms:
3 to 5 years 8Time to fund:
Within one day, once approved9Loan types:
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchasesFees:
Origination feeDiscounts:
AutopayEligibility:
A U.S. citizen or permanent resident; not available in DC, SC, WVCustomer service:
Phone, emailSoft credit check:
Yes

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Use a balance transfer card

Best if: You plan to pay off your balance quickly.

Another option for consolidating credit card debt is a balance transfer. This process lets you move your balance from one credit card to another.

Some balance transfer cards come with a 0% APR introductory offer, which means you could avoid paying interest if you can repay your debt before this period ends — usually within nine to 21 months, depending on the card.

However, if you can’t pay off your debt in time, you could stick with some hefty interest charges.

Pros

0% APR offer: Depending on the card you choose, you might be able to take advantage of a 0% APR introductory period and avoid paying interest for a certain period of time. This could be especially helpful if you plan to repay your balance quickly.Could help establish credit history: If you keep the balance transfer card open after paying off your initial debt, you can continue to use it to build your positive payment history and improve your credit.Might offer rewards or other perks: Some balance transfer cards provide various rewards or perks, such as cash back or travel points.

Cons

Might come with fees: In many cases, you’ll have to pay a balance transfer fee. This can range from 3% to 5% of the balance you want to transfer.Could come with high interest charges: If you don’t choose a card with a 0% APR introductory offer or can’t pay off your balance before this period ends, you could end up paying a large amount of interest.Might lead to further debt: Although a balance transfer card could help you manage your debt, it’s still another credit card — for some borrowers, it might be tempting to rack up a balance again.

Learn More: Refinancing Credit Card Debt and Getting Approved: Guide

Tap into your home’s equity

Best if: You own a home with at least 15% to 20% equity.

If you’re a homeowner, you might be able to tap into your home’s equity with a home equity loan or home equity line of credit (HELOC) and use the funds to consolidate your credit card debt.

With a home equity loan, you’ll get a lump sum that you can use how you wish.With a HELOC, you’ll have access to a revolving credit line that you can repeatedly draw on and pay off.

Because these loans are secured by your home, they often come with lower interest rates compared to credit cards or personal loans.

However, keep in mind that if you can’t keep up with your payments, you risk losing your house.

Pros

Lower interest rates: Because there’s less risk to the lender, home equity loans and HELOCs tend to have lower interest rates than credit cards or personal loans.Long repayment term: You could have five to 30 years to repay a home equity loan or up to 20 years to pay off a HELOC.Can use funds for any purpose: You can use the funds from a home equity loan or HELOC for almost any purpose. This could be helpful if you have other expenses to cover in addition to your credit card debt.

Cons

Risk of foreclosure: If you can’t make your payments on a home equity loan or HELOC, the lender could seize your home.Closing costs: Home equity loans and HELOCs can come with similar closing costs as a traditional mortgage — often 2% to 5%.Longer process: Depending on the complexity of the loan, it could take a few weeks for your loan to be processed and funded.

Check Out: Home Equity Loan vs. Personal Loan: Which Is Right for You?

2. Work with your credit card company

In some cases, you might be able to work out an arrangement with your credit card company that could help you tackle your debt. Here are a few options to consider:

sk your credit card company about a hardship plan

Best if: Your account is in good standing.

If your credit card payments are becoming too difficult to manage, it’s a good idea to call your card company to see if any assistance is available to you.

For example, several credit card companies offer hardship plans, which often provide a lower interest rate, reduced monthly payments, and lower fees.

Generally, credit card companies prefer to work with long-time customers who haven’t missed any payments. If you think you might not be able to make a payment, be sure to reach out to your card issuer as soon as possible.

Pros

Could lower your interest rate: A hardship plan could temporarily provide more optimal terms, such as a lower interest rate.Fixed repayment: Hardship plans usually come with fixed repayment schedules, which could make it easier to budget for your payments.Maintain good standing: If you reach out to your credit card company before you miss any payments, you’ll have a better chance of keeping your account in good standing with the company.

Cons

Might hurt your credit: Your card issuer might suspend or close your account for the duration of the hardship plan, which could lead to a decrease in your credit score.Could make it hard to access more credit: If your card issuer reports your hardship plan to the credit bureaus, you might have a harder time qualifying for other loans and credit in the future.Can’t combine multiple cards: If you have debt on multiple credit cards and want to sign up for a hardship plan, you’ll need to contact each card issuer individually.

Learn More: Coronavirus Hardship Loans: 7 Options to Consider

Try to negotiate a debt settlement

Best if: You have a sum of cash that you can use to negotiate a settlement for less than what you owe.

Debt settlement is an arrangement where your credit card company agrees to accept a lump sum or number of payments for less than what you owe in order to settle the account.

You can approach your creditor to discuss settlement on your own, or you could involve one of the several for-profit companies that offer debt settlement services.

Keep in mind: For-profit debt settlement companies often ask you to stop making payments on your accounts while they negotiate with your creditors, which could severely damage your credit.

Pros

Might be able to pay off your debt for less than what you owe: If your card issuer accepts the debt settlement plan, you could pay off your debt for less than what you actually owe.Can be done on your own: While there are several companies that could help you pursue debt settlement, you also have the option to work with your card issuer on your own.Could help you avoid bankruptcy: If you don’t want to file for bankruptcy, debt settlement might be a helpful option.

Cons

Could damage your credit: Your credit report will reflect that you settled an account for less than what you owed, which could hurt your credit. Your credit could also be damaged if you work with a for-profit company and agree to stop making payments.Potential fees: Debt settlement companies usually charge a fee for their services ranging from 20% to 25% of your final settlement amount.Might not work: There’s no guarantee that your card issuer will accept the settlement offer.

Check Out: How to Get Out of Credit Card Debt

Consider a debt management plan

Best if: You want professional guidance on the best way to repay your debt.

If you’re not sure how to tackle your debt, signing up for a debt management plan might be a good idea. With this option, a nonprofit debt counseling agency — such as the National Foundation for Credit Counseling — will help you come to an agreement with your creditors.

Debt management plans typically last for three to five years until your debt is paid off. During this time, you’ll make your payments to the agency, which will send the agreed-upon amounts to your creditors.

Pros

Professional help to manage your debt: Credit counselors offer a variety of resources and educational tools to help you take control of your debt and create good credit habits.Might come with lower interest rate and fees: Your creditors might agree to lower your interest rates and reduce or waive fees if you sign up for a debt management plan.Could improve your credit score: Making on-time payments under a debt management plan could help you build a positive payment history and improve your credit score over time.

Cons

Might close your credit cards: Any credit cards included in a debt management plan will likely have to be closed, meaning you’ll have less access to credit. Additionally, you might not be permitted to apply for new credit for the duration of the plan.Could come with fees: Depending on the agency you choose, you might have to pay upfront and monthly fees.Will have to pay off your debt in full: Unlike with a debt settlement, you’ll have to pay off your full balance on a debt management plan.Tip: Under a debt management plan, you’ll make just one monthly payment — similar to debt consolidation. However, you won’t necessarily be able to get a lower interest rate.

If you have good credit and can qualify for a lower interest rate on a personal loan, consolidating your debt might be a better option if you’re looking to save money on your debt.

Just remember to consider how much a personal loan will cost you before you borrow so you can be prepared for any added expenses.

You can estimate how much you’ll pay for a loan using our personal loan calculator below.

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3. Choose a debt payoff strategy

If you have multiple cards to pay off, choosing a debt payoff strategy could be helpful. Here are a couple of methods to consider:

Use the debt avalanche method

Best if: You’re motivated by long-term interest savings.

With the debt avalanche method, you’ll focus on paying off your debt with the highest interest rate first.

Here’s how it works:

Pros

Could save money on interest: Paying down your highest-interest debt first could help you reduce your overall interest charges.Might get out of debt faster: Saving money on interest might help you pay off your debt ahead of schedule.

Cons

Could take longer to see results: While paying down your highest-interest debt might help you save money on interest, it could take a while to see any significant results.Might be hard to sustain motivation: If you need to enjoy small wins to maintain motivation, you might have a hard time sticking to the debt avalanche method.

Learn More: How to Consolidate Bills Into One Payment

Use the debt snowball method

Best if: You’re motivated by small wins.

If you choose the debt snowball method, you’ll concentrate on repaying your smallest debt first. Here’s how it works:

Pros

Faster results: You’ll likely see quicker results with the debt snowball method compared to the debt avalanche.Could help maintain motivation: Because you’ll be paying off balances sooner with the debt snowball, it could be easier to stay motivated.

Cons

Won’t save as much on interest: The debt snowball method generally doesn’t offer the same amount of interest savings as the debt avalanche.Could take longer: Because you won’t be saving much money on interest, it will likely take longer to fully repay your debt using the debt snowball method.

Check Out: Are Interest-Free Loans Really Interest-Free?

4. Reevaluate your current spending

Establishing a financial plan that prioritizes paying off debt could also help you tackle a $10,000 credit card balance. Here are a few strategies that could help:

Create (or update) your budget

Creating a budget is a good way to keep track of your income as well as your expenses. It can also help you plan for your financial goals — such as paying off your credit card debt.

To set up a budget focused on debt payoff:

Calculate your monthly income.Calculate your monthly expenses.Subtract your expenses from your income — this amount is what you can afford to put toward your debt.

Cut out the non-essentials

As you list out your monthly expenses, consider what you might be able to cut. For example, maybe you could unsubscribe from a streaming service you hardly use. Or you might start cooking at home to save money on dining out.

Tip: By reducing your spending, you’ll have more room in your budget to focus on paying off your credit card debt.

Sell your stuff

Many of us have unused items lying around the house that could be sold for extra cash. For example, you might consider selling electronics, furniture, or books.

Tip: If you don’t have anything to sell, you could consider purchasing items for cheap on a marketplace, upcycling them, and reselling for a profit.

Find a side hustle

After reviewing your budget, you might find that you don’t have much extra cash to put toward debt. In this case, you might think about starting a side hustle to earn more money.

For example, you could:

Drive for a ridesharing business, such as Uber or LyftDeliver food through DoorDash or UberEatsOffer freelance services, such as writing or consultingTutor local students

Frequently asked questions

Here are the answers to a few commonly asked questions about paying off credit card debt:

What is the monthly payment on a $10,000 loan?

The monthly payment on a $10,000 loan will depend on:

Interest rate: You’ll generally need good to excellent credit to qualify for the lowest available interest rates. The higher your interest rate, the more you’ll pay monthly as well as over the life of the loan.Repayment term: Personal loans typically come with a term ranging from one to seven years, depending on the lender. Choosing a longer term will likely get you a lower monthly payment — but it also means you’ll pay more in interest over time. It’s usually a good idea to choose the shortest term you can afford to keep your interest costs as low as possible.For example: Say you take out a $10,000 debt consolidation loan with a 10% interest rate and a five-year term. With these terms, you’d end up paying $323 a month with a total repayment cost of $11,616.

If you qualified for a 7% interest rate and chose a three-year term instead, you’d have a monthly payment of $309 and a total repayment cost of $11,115.

Is it smart to pay off one credit card with another?

You typically can’t use a credit card to make payments on another card. However, you can move your balance from one card to another with a balance transfer.

If you can qualify for a balance transfer card with a 0% APR introductory offer and can repay your balance before this period ends, then it could be a good way to save money on interest. But if you wouldn’t be able to pay off the card in time, you might be better off keeping your balances where they are.

How much credit card debt is OK to have?

Whether or not you have too much credit card debt depends on a couple of factors:

Monthly income: Having monthly debt payments that take up a large portion of your income can make debt unmanageable and saving for other goals impossible. It’s generally advised that monthly debt payments in total take up no more than 36% of your monthly income.Credit utilization: One of the major components of your credit score is your credit utilization ratio — the amount you owe on revolving credit lines (like credit cards) compared to your total credit limits. Using a high percentage of your available credit could have a negative impact on your credit. It’s typically a good idea to keep your credit utilization ratio under 30%.

If you decide to take out a personal loan to consolidate your credit card debt, remember to consider as many lenders as you can to find the right loan for you.

This is easy with Credible: You can compare your prequalified rates from multiple lenders in two minutes — without affecting your credit.

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Kevin Smith

corazoncrm.org

Loans Serivces

What Happens to Your Mortgage When You Die?

October 30, 2021 Kevin Smith

One important aspect of estate planning is deciding what will happen to your home after you die. The answer might be fairly cut and dry if the home is fully paid for. If it’s not, though, you’ll need to consider the financial ramifications for your estate and for the person who inherits the home.

Here’s what happens to your mortgage when you die:

Who assumes a mortgage after my death?How to take over the mortgage of an inherited housePlanning ahead

Who assumes a mortgage after my death?

No one automatically assumes your mortgage after your death. Your estate executor (i.e., the person you appoint to carry out your will and manage your estate after you die) or administrator (i.e., the person a court appoints to fulfill those same duties) will continue to make payments using funds from the estate while everything is being settled.

Later, the individual who inherits the home might be able to assume the loan.

Good to know: If you’re a co-borrower or cosigner with the decedent, you don’t have to do anything to take over the mortgage because you’re already responsible for paying it. You’ll simply continue the payments. However, you should contact the mortgage servicer to inform them of the decedent’s death.

How to take over the mortgage of an inherited house

Mortgage loans have a due-on-sale clause, also called an acceleration clause, that requires the loan to be paid in full if it transfers to a new owner. However, federal law prohibits lenders from accelerating a loan in the event of a borrower’s death. Individuals who acquire ownership this way are considered “successors in interest,” and lenders must treat them as if they were the borrower.

The law allows a successor in interest to assume the loan, without having to apply or qualify, and continue making the payments. You’re also entitled to modify the mortgage to avoid foreclosure if you wish to keep the home.

What are my options as the heir of a home with a mortgage?

In the event you inherit a mortgaged home, you have several options. Which one is best depends on your personal preferences and your financial situation.

If you want to keep the house, you can:

Assume the mortgage: Federal law allows heirs to assume a decedent’s mortgage loan in many cases. As long as you’re a qualified successor in interest — someone who inherited or otherwise acquired ownership as a result of the homeowner’s death — you can take over the loan once the deed is signed over to you. The law also entitles you to modify the loan if you’re not financially capable of making the payments.Refinance the mortgage loan: You can also refinance the mortgage into a new mortgage loan as soon as the deed is signed over to you. You’ll have to apply for the loan, qualify based on your own creditworthiness, and pay any closing costs. However, refinancing could result in a lower interest rate or an extension of the time to pay off the loan — either of which can make the home more affordable.Repay the loan in full: Assuming you have the cash on hand, you can avoid mortgage issues entirely by paying the balance in full. The home would then be yours free and clear.

If you can’t or don’t want to keep the house, you can:

Sell it: The home is yours as soon as the deed has been transferred to you, so you can list it for sale just like you would a home you’d purchased yourself.Let the lender foreclose: If you don’t want the house and don’t want to sell it — a reasonable decision if you’re unlikely to sell at a profit — you can simply take no action. After a period of time with no payments, the lender will foreclose and repossess the home.

Important: Foreclosure can have tax consequences for the estate. Contact an accountant or attorney before going this route.

What happens to a reverse mortgage when you die?

The rules change when you inherit a home from someone other than a spouse with whom you are a co-borrower on the home’s reverse mortgage.

A reverse mortgage allows older homeowners to access the existing equity from their home. These loans don’t have to be paid back unless the borrower and their co-borrower spouse both die or move out of the home.

If you inherit a property with a reverse mortgage, you have the option of selling or keeping the home. The loan is not assumable, but you can keep the house by doing one of two things: paying off the balance or paying 95% of the home’s value, whichever is less.

Similarly, if you decide to sell the home, you’ll use the sale proceeds to pay off the debt owed on the loan — or an amount that’s at least 95% of the home’s value — and then pocket the remaining proceeds.

Planning ahead

A crucial step in estate planning is drafting a will detailing how you want your estate handled after you die, along with who you want to serve as the estate executor. In the event you die intestate — without a will — the court will appoint an administrator to take on that role.

When planning to bequeath a mortgaged home, it’s important that you disclose the mortgage to your executor and close relatives — otherwise they won’t know to make payments, and the home could be lost to foreclosure inadvertently.

In addition, consider whether the individual who inherits your home will be able to afford mortgage payments and upkeep. An estate or financial planner can help you devise a strategy to keep your gift from becoming a burden to your loved ones.

Compare your home loan options

Credible is a mortgage marketplace that allows you to easily compare rates and loan options. With Credible, you can secure a streamlined pre-approval letter and see loan details from all of our partner lenders in just a few minutes. We also provide transparency into lender fees that other brokers typically don’t.

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Kevin Smith

corazoncrm.org

Loans Serivces

FHA 203(k) Loan: What It Is, How it Works, and More

October 30, 2021 Kevin Smith

Buying a fixer-upper home instead of a turnkey property can help you save money — as long as you have the time and budget to complete the necessary repairs. However, depending on the property condition, you might struggle to qualify for a traditional home loan.

Thankfully, you can apply for an FHA 203(k) loan. This type of mortgage rehabilitation loan is easier to qualify for than a conventional home loan and can potentially help you transform your distressed property into one of the best lots in the neighborhood.

Here’s what you need to know about FHA 203(k) loans:

What is a 203(k) loan?How does a 203(k) loan work?203(k) loan types203(k) loan uses203(k) loan requirements203(k) loan process203(k) loan pros and cons

What is a 203(k) loan?

There are several FHA home loan programs available to you. Most single-family homes requiring minimal repairs are eligible for 203(b) loans — the most common FHA loan.

But when a house needs extensive work for health, safety, and/or security reasons, you may need to apply for a 203(k) mortgage instead. Also known as a Section 203(k) loan, this rehab loan lets you buy the property as-is and use funds from the loan to complete the necessary repairs. You can also refinance your existing mortgage to perform structural and cosmetic repairs to your current home.

While Credible doesn’t offer 203(k) loans, our streamlined process makes comparing rates for conventional loans easy. It only takes a few minutes to see prequalified rates and generate a streamlined pre-approval letter using our free online tools.

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How does a 203(k) loan work?

You can purchase or refinance a home that’s at least a year old with an FHA 203(k) rehab loan. Primary residences requiring structural repairs and minor improvements are eligible for financing with a fixed or adjustable interest rate.

A Section 203(k) loan can be an excellent option as you only need to apply for one loan to secure the property and finance repairs with lenient borrower requirements.

While 203(k) loan requirements are typically more lenient than other home loans, the application process can be more tedious. For example, the lender requires a list of specific repairs, a cost estimate, and hiring a licensed contractor before you can close and make an initial draw.

Good to know: Only repairs or renovations that add value to the property will qualify. Certain luxury items like swimming pools and barbecue pits aren’t allowed. And while you may not have to occupy the home immediately, you’ll only have six months to complete the proposed projects.

203(k) loan types

There are two different 203(k) renovation loan options. Your estimated repair costs and the types of repairs determine which loan to apply for.

Limited 203(k) loan

A limited 203(k) loan — formerly known as a streamline 203(k) — allows you to borrow up to $35,000 for repairs or improvements. These loans are often better suited for cosmetic or non-structural repairs like a kitchen remodel or new flooring. Essentially, you’re performing the repairs that the seller didn’t do, allowing you to buy the house at a potential discount.

Here are some of the features of this loan type:

Cosmetic repairs only: Most minor remodels and non-structural repairs are eligible but an approved contractor must finish the work within six months. Contingency reserve: While you can borrow up to $35,000 for repairs, the lender may require a 20% contingency reserve — essentially, funds that are set aside to cover any cost overruns. For example, you might borrow $35,000 for repairs but the lender might withhold up to 20% (in this case, $7,000) in a reserve. They’re recommended, but not required, for limited 203(k) loans.Homebuyers and homeowners can apply: This loan is available to buyers and existing homeowners. However, you cannot refinance an active 203(k) loan.Self-made work plan: You may not have to work with a 203(k) consultant to draft a work plan for any repairs and improvements. However, your mortgage lender must approve the plan and the contractors you hire.

Standard 203(k) loan

If your home requires major structural repairs to get it into live-in condition, the standard 203(k) loan is a better option. This loan can also be a great alternative to construction loans when you retain the original foundation but need to rebuild or modify the existing structure.

The main features of this loan include:

Minimum $5,000 in improvements: You’ll only need to complete at least $5,000 in eligible improvements to qualify for a standard 203(k) loan.Contingency reserve: Lenders require a contingency reserve of up to 20% of the amount you borrow on all standard 203(k) loans.Complete major repairs: You can use this loan for significant repairs or remodeling as long as the original foundation exists. For example, you could rebuild the original structure or convert a single-family home into a multi-family property.Work with a 203(k) consultant: An FHA-approved 203(k) consultant must create your work plan and cost estimates. Qualified borrowers that perform their own work may be able to waive this requirement but cannot receive payment for the labor.More eligible repairs and improvements: Some repairs and improvements that aren’t eligible for funding with a limited 203(k) loan are eligible with a standard 203(k) loan. These include landscaping, structural rehabilitation, and installing storm shelter additions.

203(k) loan uses

You can use a 203(k) loan for many non-luxury repairs and improvements. Here are some ways to boost the value of your property using either 203(k) loan:

Heat and air conditioning systemsPlumbingWell or septic systemRoofingEnergy conservation improvementsSmoke detectorsExterior decks, patios, and porchesFencesWalkways and drivewaysKeep in mind: Your lender may only authorize repairs that increase the as-is property value by the same amount as the amount you spend.

203(k) loan requirements

Here are some of the FHA requirements you’ll need to meet:

Credit score: You’ll need a credit score of at least 500 to apply. However, 203(k) loan lenders may require a score above 600.Down payment: Your down payment is 10% with a credit score between 500 and 579. But you’ll only need to make a 3.5% down payment with a score of 580 or higher. Mortgage insurance premiums: You’ll pay an upfront mortgage insurance premium of 1.75% on the purchase price and repair funds. This loan also has an annual premium for the life of the loan. You can cancel the premium after 11 years if your initial down payment is 10% or higher. Employment history: You may need to provide proof of employment for the last two years. Your two most recent tax returns may also qualify. Traditional W-2 or self-employment income can qualify with a consistent work history.Debt-to-income ratio (DTI): Your maximum debt-to-income ratio is 43% in most instances. The DTI can be as high as 50% when you have qualifying income and cash reserves.Loan limits: You can borrow up to the nationwide mortgage limit or 110% of the estimated property value after improvements, whichever is less. In 2021, the mortgage limit is $356,362 in most counties for a single-family home and $822,375 in higher-cost areas.Primary residences only: 203(k) loans are only for primary residences. You must intend to live in the house for at least one year after the closing date.Must be an existing property: Your home must be at least a year old. The home can be a single-family home with one to four units, a condominium, or a manufactured house if the original foundation remains undisturbed.Closing costs: You’ll have to pay several fees including origination, appraisal, 203(k) consultant, and contractor charges.

203(k) loan process

Here is a look at how to apply for a 203(k) loan:

Apply with a 203(k) lender: Compare pre-approval rates from several mortgage lenders offering 203(k) loans. The lender can help you determine if a standard or limited 203(k) loan is better. Gather your documents: After identifying a property, apply for financing by submitting your personal, employment, and property details.Home appraisal: Your lender may require an initial inspection to determine the current property value and amount you may borrow for repairs. A 203(k) consultant can identify the necessary work items and total cost estimate.Hire a contractor: Unless you’re a professional contractor, you’ll need to hire a licensed general or specialized contractor before the loan closing date to complete the repairs. Using a contractor with previous 203(k) experience can prevent delays.Close on the loan: After hiring a qualified contractor, you can close on the loan to purchase the property and draw the initial repair funds. You’ll need to pay the closing costs, down payment, and upfront mortgage insurance premium.Complete the repairs: You have six months to complete the necessary repairs with a 203(k) loan. The work must start within 30 days of the closing date and the lender requires routine progress updates.Borrower’s letter of completion: You’ll provide the lender with a signed letter of completion stating all necessary repairs are complete to your satisfaction. Any unused funds from your contingency reserve will be applied to your loan principal.Occupy the house: You might be unable to occupy the dwelling until the necessary repairs are complete. After gaining a certificate of occupancy, you can move into your home to finalize the loan process.

203(k) loan pros and cons

These are the advantages and disadvantages of an FHA 203(k) rehab loan:

Pros

Most repairs qualify: Many minor and major repairs and improvements are eligible and can increase your property value quickly. Flexible borrower requirements: This loan type typically requires a lower credit score and down payment than conventional mortgages and construction loans. You can also apply for a 203(k) purchase or 203(k) refinance loan.Flexible borrowing limits: You can borrow up to your area’s borrowing limit or 110% of the after-repair property value.Lenient property requirements: While you must make repairs, 203(k) loans accept properties that may not pass the appraisal process for a conventional mortgage. Buying a fixer-upper at a low price can give you a tidy sum to spend on repairs and may end up being cheaper than purchasing a turnkey property.

Cons

Short repair window: You only have six months to complete the required repairs. Lenders may grant an extension for extreme circumstances. Houses with excessive damage may not qualify despite selling at a bargain price.Must hire a contractor: You’ll need to use a professional contractor to complete the work. Standard 203(k) loans also require hiring a consultant during the application process to develop a work plan. This oversight can complicate the purchase process. No investment properties: This program is strictly for primary residences that you plan on living in for at least one year. Rental homes and fix-and-flips don’t qualify.Mortgage insurance premiums: Like other FHA loans, you’ll have to pay mortgage insurance, possibly for the life of the loan. A 1.75% upfront mortgage insurance premium (UFMIP) is due at closing and an annual mortgage insurance premium (MIP) not exceeding 0.85% also applies.

The post FHA 203(k) Loan: What It Is, How it Works, and More appeared first on Credible.

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Kevin Smith

corazoncrm.org

Loans Serivces

13 Best Loans for Refinancing Student Loans Without a Cosigner

October 28, 2021 Kevin Smith

Refinancing your student loans with a cosigner could improve your approval chances as well as possibly get you a lower interest rate than you’d get on your own.

However, you don’t have to refinance with a cosigner if you meet the lender’s underwriting criteria on your own.

If you’re wondering how to refinance student loans without a cosigner, here’s what you should know:

Best lenders for refinancing without a cosignerOther student loan refinancing lenders to considerHow to refinance student loans without a cosignerPros of not using a cosigner when refinancingCons of not using a cosigner when refinancingHow cosigner release worksFrequently asked questions about refinancing without a cosigner

Best lenders for refinancing without a cosigner

If you’re thinking about refinancing your student loans without a cosigner, it’s important to compare as many lenders as possible first. This way, you can find the right loan for your situation.

Keep in mind: You’ll generally need good to excellent credit to get approved for refinancing — especially if you don’t have a cosigner. A good credit score is usually considered to be 700 or higher.

There are also some lenders that offer student loan refinancing for bad credit. But these loans typically come with higher interest rates compared to good credit loans.

Here are Credible’s partner lenders that don’t require a cosigner for refinancing:

LenderFixed rates from (APR)Variable rates from (APR)Loan terms (years)Loan amountsOffer Cosigner Release?

View details>
4.54%+N/A10, 15, 20$7,500 up to $200,000
(larger balances require special approval)Yes, after 36 monthsFixed APR:
4.54%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$7,500 up to $500,000Loan terms (years):
10, 15, 20Max. undergraduate loan balance:
$250,000 – $500,000Time to fund:
4 monthsRepayment options:
Immediate repayment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a resident of KentuckyCustomer service:
PhoneSoft credit check:
NoCosigner release:
After 36 monthsLoan servicer:
Kentucky Higher Education Student Loan CorporationMax. graduate loan balance:
$250,000 – $500,000Credible Review:
Advantage Education Loan reviewOffers Parent PLUS Refinancing :
Yes

View details>
2.15%+
1.87%+5, 7, 10, 15, 20$10,000 up to $250,000
(depending on degree)NoFixed APR:
2.15%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$10,000 to $400,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of TexasCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 – $149,000Max. Graduate Loan Balance:
$200,000 – $400,000Offers Parent PLUS Refinancing:
Does not disclose

View details>
2.44%+1
2.24%+15, 7, 10, 15, 20$10,000 to $500,000
(depending on degree and loan type)Yes, after 36 monthsFixed APR:
2.44%+1Variable APR:
2.24%+1Min. credit score:
Does not discloseLoan amount:
$10,000 to $750,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
Autopay, loyaltyEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $150,000Offers Parent PLUS Refinancing:
Yes

View details>
2.99%+2
2.94%+25, 7, 10, 12, 15, 20$5,000 to $300,000
(depending on degree type)Yes, after 24 monthsFixed APR:
2.99%+2Variable APR:
2.94%+2Min. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Loan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
Military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
All states except for MECustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
College Ave Servicing LLCMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $300,000Offers Parent PLUS Refinancing:
Yes

View details>
2.16%+
2.11%+5, 7, 10, 15, 20$5,000 to $500,000Yes, after 36 monthsFixed rate:
2.44%+1Variable rate:
2.24%+1Min. credit score:
680Loan amount:
$5,000 to $500,000Cosigner release:
YesLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Available in all states, except MS and NVCustomer service:
Email, phone, chatSoft credit check:
YesLoan servicer:
FirstMarkMax. undergraduate loan balance:
$500,000Max. graduate loan balance:
$500,000Offers Parent PLUS refinancing:
YesMin. income:
$65,000 (for 15- and 20-year products)

View details>

1.8%+5
1.8%+55, 10, 15, 20$1,000 to $250,000Yes, after 36 monthsFixed APR:
1.8%+5Variable APR:
1.8%+5Min. credit score:
700Loan amount:
$7,500 to $200,000Loan terms (years):
5, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and submit two personal referencesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Granite State Management & Resources (GSM&R)Max. Undergraduate Loan Balance:
$150,000 to $249,000Max. Graduate Loan Balance:
$150,000 to $199,000Offers Parent PLUS Refinancing :
Yes

View details>
2.47%+3
2.39%+35, 7, 10, 12, 15, 20Minimum of $15,000NoFixed APR:
2.47%+3Variable APR:
2.39%+3Min. credit score:
680Loan amount:
No maximumLoan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
ForbearanceFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved schoolCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
MohelaMax. Undergraduate Loan Balance:
No maximumMax. Graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

View details>
3.47%+4
2.44%+45, 10, 15, 20$5,000 to $250,000Yes, after 48 months of on-time paymentsFixed APR:
3.47%+4Variable APR:
2.44%+4Min. credit score:
670Loan amount:
$5,000 to $250,000Loan terms (years):
5, 10, 15, 20Repayment options:
Academic deferment, military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must be U.S. citizen or permanent residentCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
YesMax undergraduate loan balance:
$250,000Max graduate loan balance:
$250,000Offers Parent PLUS refinancing:
Yes

View details>
2.24%+7N/A5, 7, 10, 12, 15, 20Up to $300,000Yes, after 24 monthsFixed APR:
2.24%+7Variable APR:
N/AMin. credit score:
670Loan amount:
Up to $300,000Loan terms (years):
5, 7, 10, 15, 20Time to fund:
Usually one business dayRepayment options:
Academic deferral, military deferral, forbearance, death/disability dischargeFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsMax. undergraduate loan balance:
$300,000Max. graduate balance:
$300,000Offers Parent PLUS loans:
YesMin. income:
None

View details>
3.05%+
3.05%+7, 10, 15$10,000 up to the total amount of qualified education debt NoFixed APR:
3.05%+Variable APR:
3.05%+Min. credit score:
670Loan amount:
$10,000 up to the total amountLoan terms (years):
7, 10, 15Repayment options:
Military deferment, loans discharged upon death or disabilityFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
AESMax. Undergraduate Loan Balance:
No maximumMax. Gradaute Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

View details>
2.89%+N/A5, 8, 12, 15$7,500 to $300,000Yes, after 12 monthsFixed APR:
2.89%+Variable APR:
N/AMin. credit score:
670Loan amount:
$7,500 to $300,000Loan terms (years):
5, 8, 12, 15Repayment options:
Does not discloseFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen and have and at least $7,500 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 12 monthsLoan servicer:
PenFedMax. Undergraduate Loan Balance:
$300,000Max. Graduate Loan Balance:
$300,000Offers Parent PLUS Refinancing:
Yes

View details>
3.29%+N/A5, 10, 15$7,500 up to $250,000
(depending on highest degree earned) NoFixed APR:
3.29%+Variable APR:
N/AMin. credit score:
680Loan amount:
$7,500 to $250,000Loan terms (years):
5, 10, 15Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000Customer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Rhode Island Student Loan AuthorityMax. Undergraduate Loan Balance:
$150,000 – $249,000Max. Graduate Loan Balance:
$200,000 – $249,000Offers Parent PLUS Refinancing:
Yes

View details>
2.49%+6
2.25%+65, 7, 10, 15, 20$5,000 up to the full balance of your qualified education loans NoFixed APR:
2.49%+6Variable APR:
2.25%+6Min. credit score:
Does not discloseLoan amount:
$5,000 up to the full balanceLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, military defermentFees:
NoneDiscounts:
Autopay, loyaltyEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
NoMax undergraduate loan balance:
No maximumMax graduate loan balance:
No maximumOffers Parent PLUS refinancing:
YesAll APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures | 6SoFi Disclosures

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Trustpilot

dvantage

Best for: Parents who want to transfer PLUS Loans to their children

With Advantage, you can refinance loan amounts from $7,500 to $500,000 (depending on your degree and loan type) with repayment terms from 10 to 20 years.

Advantage is also one of the few lenders that allow parents to refinance Parent PLUS Loans into their child’s name.

3.0
Credible rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

Rates and terms

Fees and Discounts

Customer Experience

Advantage Education Loan Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
4.54%+

Variable APR

Lowest variable rate available from this lenderN/A

Min. credit score

Minimum credit score needed to qualifyDoes not disclose

Loan amount

Range needed to refinance with this lender$7,500 up to $500,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
4.54%+Variable APR: N/AMin. credit score: Does not discloseLoan amount: $7,500 up to $500,000Loan terms (years): 10, 15, 20Max. undergraduate loan balance: $250,000 – $500,000Time to fund: 4 monthsRepayment options: Immediate repayment, forbearance, loans discharged upon death or disabilityFees: NoneDiscounts: AutopayEligibility: Must be a resident of KentuckyCustomer service: PhoneSoft credit check: NoCosigner release: After 36 monthsLoan servicer: Kentucky Higher Education Student Loan CorporationMax. graduate loan balance: $250,000 – $500,000Credible Review: Advantage Education Loan reviewOffers Parent PLUS Refinancing : Yes

Pros

0.25% autopay discountCan transfer Parent PLUS Loans to studentGraduated repayment plan offered

Cons

$18,000 minimum income requirementDoesn’t offer variable ratesLong cosigner release period (36 months)

Learn More: Best Companies to Refinance Parent Plus Loans

Brazos

Best for: Borrowers who live in Texas

If you’re a Texas resident, Brazos could be a good option for refinancing. With Brazos, you can refinance $10,000 to $400,000 (depending on your degree) with terms from five to 20 years.

4.4
Credible rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

Rates and terms

Fees and Discounts

Customer Experience

Brazos Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
2.15%+

Variable APR

Lowest variable rate available from this lenderN/A

Min. credit score

Minimum credit score needed to qualifyDoes not disclose

Loan amount

Range needed to refinance with this lender$10,000 to $400,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.15%+Variable APR: N/AMin. credit score: Does not discloseLoan amount: $10,000 to $400,000Loan terms (years): 5, 7, 10, 15, 20Repayment options: Military deferment, forbearanceFees: Late feeDiscounts: AutopayEligibility: Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of TexasCustomer service: Email, phoneSoft credit check: Does not discloseCosigner release: NoLoan servicer: Firstmark ServicesMax. Undergraduate Loan Balance: $100,000 – $149,000Max. Graduate Loan Balance: $200,000 – $400,000Offers Parent PLUS Refinancing: Does not disclose

Pros

0.25% autopay discountVariety of repayment terms offeredForbearance options available for economic hardship, active-duty military service, or natural disaster

Cons

Only available in TexasCould be hard to qualify if you don’t have good credit$60,000 minimum income requirement without a cosigner

Citizens

Best for: Borrowers who already have an account with Citizens

With Citizens, you can refinance loan amounts from $10,000 to $750,000 (depending on your degree and loan type) with terms from five to 20 years.

Additionally, if you already have an account with Citizens, you could get a 0.25% rate discount — plus another 0.25% off your rate if you sign up for autopay.

4.7
Credible rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

Rates and terms

Fees and Discounts

Customer Experience

Citizens Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
2.44%+1

Variable APR

Lowest variable rate available from this lender
2.24%+1

Min. credit score

Minimum credit score needed to qualifyDoes not disclose

Loan amount

Range needed to refinance with this lender$10,000 to $750,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.44%+1Variable APR:
2.24%+1Min. credit score: Does not discloseLoan amount: $10,000 to $750,000Loan terms (years): 5, 7, 10, 15, 20Repayment options: Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees: Late feeDiscounts: Autopay, loyaltyEligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service: Email, phone, chatSoft credit check: YesCosigner release: After 24 to 36 monthsLoan servicer: Firstmark ServicesMax. Undergraduate Loan Balance: $100,000 to $149,000Max. Graduate Loan Balance: Less than $150,000Offers Parent PLUS Refinancing: Yes

Pros

0.25% autopay discount0.25% loyalty discountDegree not required

Cons

Doesn’t disclose minimum credit score or income requirementsLong cosigner release period (36 months)Cosigner release not available on the Education Refinance Loan for Parents

Check Out: Can You Refinance a Student Loan to a 30-Year Term?

College Ave

Best for: Variety of repayment terms

College Ave offers refinancing on loan amounts from $5,000 to $300,000 (depending on degree type). Additionally, borrowers can choose between 16 repayment terms ranging from five to 20 years, making it easier to fit your payments into your budget.

Rates and terms

Fees and Discounts

Customer Experience

College Ave Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
2.99%+2

Variable APR

Lowest variable rate available from this lender
2.94%+2

Min. credit score

Minimum credit score needed to qualify Does not disclose

Loan amount

Range needed to refinance with this lender$5,000 to $300,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.99%+2Variable APR:
2.94%+2Min. credit score: Does not discloseLoan amount: $5,000 to $300,000Loan terms (years): 5, 7, 10, 12, 15, 20Repayment options: Military deferment, forbearance, loans discharged upon death or disabilityFees: Late feeDiscounts: AutopayEligibility: All states except for MECustomer service: Email, phone, chatSoft credit check: YesCosigner release: After 24 to 36 monthsLoan servicer: College Ave Servicing LLCMax. Undergraduate Loan Balance: $100,000 to $149,000Max. Graduate Loan Balance: Less than $300,000Offers Parent PLUS Refinancing: Yes

Pros

0.25% autopay discountVariety of repayment terms availableCosigner release offered after 24 months of consecutive, on-time payments

Cons

Doesn’t disclose minimum credit score or income requirementsUndergraduate or graduate degree requiredParents can’t transfer Parent PLUS Loans to student

CommonBond

Best for: Borrowers who plan to pay off their loan quickly

With CommonBond, you can refinance loan amounts from $5,000 to $500,000 with repayment terms from five to 20 years.

CommonBond also offers a unique hybrid loan option that starts with a fixed rate for the first half of the repayment term before switching to a variable rate — this could help you save money if you plan to pay off your loan quickly.

4.5
Credible rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

Rates and terms

Fees and Discounts

Customer Experience

CommonBond Student Loan Refinancing

Fixed rate

Lowest fixed rate available from this lender
2.44%+1

Min. credit score

Minimum credit score needed to qualify680

Loan amount

Range needed to refinance with this lender$5,000 to $500,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed rate:
2.44%+1Variable rate:
2.24%+1Min. credit score: 680Loan amount: $5,000 to $500,000Cosigner release: YesLoan terms (years): 5, 7, 10, 15, 20Repayment options: Academic deferment, forbearance, loans discharged upon death or disabilityFees: Late feeDiscounts: AutopayEligibility: Available in all states, except MS and NVCustomer service: Email, phone, chatSoft credit check: YesLoan servicer: FirstMarkMax. undergraduate loan balance: $500,000Max. graduate loan balance: $500,000Offers Parent PLUS refinancing: YesMin. income: $65,000 (for 15- and 20-year products)

Pros

Offers a hybrid loan option that starts with a fixed rate for the first half of the repayment term before switching to a variable rate0.25% autopay discountUp to 24 months of forbearance available over the life of the loan

Cons

Must be have graduated from an eligible Title IV accredited university or graduate program within CommonBond’s network$65,000 minimum income requirement for 15- and 20-year productsNot available in Mississippi or Nevada

Learn More: Debt-to-Income Ratio for Refinancing Student Loans

EDvestinU

Best for: Borrowers who didn’t graduate

EDvestinU offers refinancing on loan amounts from $7,500 to $200,000 with terms from five to 20 years. Unlike many lenders, EDvestinU doesn’t require borrowers to have graduated to be eligible.

3.8
Credible rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

Rates and terms

Fees and Discounts

Customer Experience

EDvestinU Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
1.8%+5

Variable APR

Lowest variable rate available from this lender
1.8%+5

Min. credit score

Minimum credit score needed to qualify700

Loan amount

Range needed to refinance with this lender$7,500 to $200,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Does refinancing make sense for you? Compare offers from top refinancing lenders to determine your actual savings.View DetailsFixed APR:
1.8%+5Variable APR:
1.8%+5Min. credit score: 700Loan amount: $7,500 to $200,000Loan terms (years): 5, 10, 15, 20Repayment options: Immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees: NoneDiscounts: AutopayEligibility: Must be a U.S. citizen or permanent resident and submit two personal referencesCustomer service: Email, phoneSoft credit check: YesCosigner release: After 36 monthsLoan servicer: Granite State Management & Resources (GSM&R)Max. Undergraduate Loan Balance: $150,000 to $249,000Max. Graduate Loan Balance: $150,000 to $199,000Offers Parent PLUS Refinancing : Yes

Pros

0.25% autopay discountDegree not requiredNo application, origination, or disbursement fees

Cons

Could be hard to qualify if you don’t have good creditLong cosigner release period (36 months)$30,000 to $50,000 minimum income requirement (depending on loan amount)

ELFI

Best for: Borrowers with high loan balances

Education Loan Finance (ELFI) doesn’t have a maximum loan amount — you just need at least $15,000 in student loans to refinance. You can choose between repayment terms from five to 20 years — though keep in mind that 15- and 20-year terms aren’t available for parent borrowers.

Rates and terms

Fees and Discounts

Customer Experience

Education Loan Finance Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
2.47%+3

Variable APR

Lowest variable rate available from this lender
2.39%+3

Min. credit score

Minimum credit score needed to qualify680

Loan amount

Range needed to refinance with this lenderNo maximum

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.47%+3Variable APR:
2.39%+3Min. credit score: 680Loan amount: No maximumLoan terms (years): 5, 7, 10, 12, 15, 20Repayment options: ForbearanceFees: NoneDiscounts: NoneEligibility: Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved schoolCustomer service: Email, phoneSoft credit check: YesCosigner release: NoLoan servicer: MohelaMax. Undergraduate Loan Balance: No maximumMax. Graduate Loan Balance: No maximumOffers Parent PLUS Refinancing: Yes

Pros

No maximum loan amountVariable rates capped at 9.95% APRUp to 12 months of forbearance available to borrowers facing financial hardship

Cons

Must have at least $15,000 to refinanceCosigner release not offered$35,000 minimum income requirement

Check Out: How to Pay Off $30,000 in Student Loans

INvestEd

Best for: Borrowers who might need access to forbearance

With INvestEd, you can refinance $5,000 to $250,000 with terms from five to 20 years. Additionally, borrowers can access up to 24 months of forbearance over the life of the loan, which could be helpful if you experience financial hardship or unexpected circumstances.

3.9
Credible rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

Rates and terms

Fees and Discounts

Customer Experience

INvestEd Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
3.47%+4

Variable APR

Lowest variable rate available from this lender
2.44%+4

Min. credit score

Minimum credit score needed to qualify670

Loan amount

Range needed to refinance with this lender$5,000 to $250,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
3.47%+4Variable APR:
2.44%+4Min. credit score: 670Loan amount: $5,000 to $250,000Loan terms (years): 5, 10, 15, 20Repayment options: Academic deferment, military deferment, forbearanceFees: Late feeDiscounts: AutopayEligibility: Must be U.S. citizen or permanent residentCustomer service: Email, phone, chatSoft credit check: YesCosigner release: YesMax undergraduate loan balance: $250,000Max graduate loan balance: $250,000Offers Parent PLUS refinancing: Yes

Pros

0.25% autopay discountUp to 24 months of forbearance available over the life of the loanDegree not required

Cons

Charges late and returned payment feesLong cosigner release period (48 months)$36,000 minimum income requirement

ISL Education Lending

Best for: Borrowers who want to refinance while they’re in school

ISL Education Lending offers refinancing on loan amounts from $5,000 to $300,000 ($10,000 minimum for California residents) with terms from five to 20 years. Unlike many other lenders, ISL Education Lending doesn’t require you to have graduated — in fact, you can refinance while you’re still in school.

Keep in mind that if you’re still in school, you can refinance a maximum of $200,000.

4.2
Credible rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

Rates and terms

Fees and Discounts

Customer Experience

ISL Education Lending Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
2.24%+7

Min. credit score

Minimum credit score needed to qualify670

Loan amount

Range needed to refinance with this lenderUp to $300,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.24%+7Variable APR: N/AMin. credit score: 670Loan amount: Up to $300,000Loan terms (years): 5, 7, 10, 15, 20Time to fund: Usually one business dayRepayment options: Academic deferral, military deferral, forbearance, death/disability dischargeFees: NoneDiscounts: AutopayEligibility: Available in all 50 statesCustomer service: Email, phoneSoft credit check: YesCosigner release: After 24 monthsMax. undergraduate loan balance: $300,000Max. graduate balance: $300,000Offers Parent PLUS loans: YesMin. income: None

Pros

Degree not requiredGraduated repayment plan offeredNo minimum income requirement

Cons

Variable interest rates not offeredCould be hard to qualify if you have poor creditLower maximum loan amount if you want to refinance while still in school

Learn More: When to Refinance Student Loans

MEFA

Best for: Borrowers who attended a public or nonprofit university

With the Massachusetts Educational Financing Authority (MEFA), you can refinance $10,000 up to the total amount of your qualified education debt. Repayment terms range from seven to 15 years.

Keep in mind that you must have attended a public or nonprofit university to refinance with MEFA — for-profit schools aren’t eligible.

4.0
Credible rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

Rates and terms

Fees and Discounts

Customer Experience

MEFA Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
3.05%+

Variable APR

Lowest variable rate available from this lender
3.05%+

Min. credit score

Minimum credit score needed to qualify670

Loan amount

Range needed to refinance with this lender$10,000 up to the total amount

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
3.05%+Variable APR:
3.05%+Min. credit score: 670Loan amount: $10,000 up to the total amountLoan terms (years): 7, 10, 15Repayment options: Military deferment, loans discharged upon death or disabilityFees: NoneDiscounts: NoneEligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service: Email, phoneSoft credit check: YesCosigner release: NoLoan servicer: AESMax. Undergraduate Loan Balance: No maximumMax. Gradaute Loan Balance: No maximumOffers Parent PLUS Refinancing: Yes

Pros

Might be able to refinance up to the total amount of your qualified education debtDegree not requiredNo fees

Cons

Not available for borrowers who attended for-profit universitiesNo discounts offeredLimited repayment terms (7, 10, or 15 years)

PenFed

Best for: Spouses who want to refinance their loans together

With PenFed, you can refinance $7,500 to $300,000 with terms from five to 15 years. PenFed is also the only major lender that allows spouses to refinance their loans together.

Rates and terms

Fees and Discounts

Customer Experience

PenFed Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
2.89%+

Variable APR

Lowest variable rate available from this lenderN/A

Min. credit score

Minimum credit score needed to qualify670

Loan amount

Range needed to refinance with this lender$7,500 to $300,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.89%+Variable APR: N/AMin. credit score: 670Loan amount: $7,500 to $300,000Loan terms (years): 5, 8, 12, 15Repayment options: Does not discloseFees: NoneDiscounts: NoneEligibility: Must be a U.S. citizen and have and at least $7,500 in student loansCustomer service: Email, phone, chatSoft credit check: YesCosigner release: After 12 monthsLoan servicer: PenFedMax. Undergraduate Loan Balance: $300,000Max. Graduate Loan Balance: $300,000Offers Parent PLUS Refinancing: Yes

Pros

Spouses can refinance their student loans togetherCosigner release offered after 12 months of consecutive, on-time paymentsNo fees

Cons

No discounts offered$42,000 to $50,000 minimum income requirement (depending on loan amount)Must have bachelor’s degree or higher

Learn More: 4 Credit Unions for Student Loan Refinancing

RISLA

Best for: Borrowers looking for income-based repayment options

Most private student loans don’t offer the repayment options that federal student loans do. However, the Rhode Island Student Loan Authority (RISLA) offers an income-based repayment (IBR) plan to borrowers facing financial hardship. Like the federal IBR plan, your payments will be 15% of your discretionary income, and RISLA will forgive any remaining balance after 25 years.

With RISLA, you can refinance loan amounts from $7,500 to $250,000 (depending on the highest degree you’ve earned) with terms from five to 15 years.

3.7
Credible rating>

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

Rates and terms

Fees and Discounts

Customer Experience

RISLA Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
3.29%+

Variable APR

Lowest variable rate available from this lenderN/A

Min. credit score

Minimum credit score needed to qualify680

Loan amount

Range needed to refinance with this lender$7,500 to $250,000

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
3.29%+Variable APR: N/AMin. credit score: 680Loan amount: $7,500 to $250,000Loan terms (years): 5, 10, 15Repayment options: Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees: NoneDiscounts: AutopayEligibility: Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000Customer service: Email, phoneSoft credit check: Does not discloseCosigner release: NoLoan servicer: Rhode Island Student Loan AuthorityMax. Undergraduate Loan Balance: $150,000 – $249,000Max. Graduate Loan Balance: $200,000 – $249,000Offers Parent PLUS Refinancing: Yes

Pros

Offers an income-based repayment plan to borrowers facing financial hardshipCan defer payments for up to 36 months if you return to graduate schoolDegree not required

Cons

Variable rates not offered$40,000 minimum income requirementCosigner release not offered

SoFi

Best for: Borrower perks

With SoFi, you can refinance loan amounts starting at $5,000 up to the full balance of your qualified education loans with terms from five to 20 years.

Additionally, SoFi borrowers have access to several perks, such as unemployment protection, career coaching, and investing advice.

Rates and terms

Fees and Discounts

Customer Experience

SoFi Student Loan Refinancing

Fixed APR

Lowest fixed rate available from this lender
2.49%+6

Variable APR

Lowest variable rate available from this lender
2.25%+6

Min. credit score

Minimum credit score needed to qualifyDoes not disclose

Loan amount

Range needed to refinance with this lender$5,000 up to the full balance

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.49%+6Variable APR:
2.25%+6Min. credit score: Does not discloseLoan amount: $5,000 up to the full balanceLoan terms (years): 5, 7, 10, 15, 20Repayment options: Academic deferment, military defermentFees: NoneDiscounts: Autopay, loyaltyEligibility: Available in all 50 statesCustomer service: Email, phone, chatSoft credit check: YesCosigner release: NoMax undergraduate loan balance: No maximumMax graduate loan balance: No maximumOffers Parent PLUS refinancing: Yes

Pros

0.25% autopay discountMight be able to refinance the full balance of your qualified education loansBorrower perks, such as unemployment protection and investing advice

Cons

Doesn’t disclose minimum credit requirementsDoesn’t offer cosigner releaseMust have earned an associate degree or higher from a Title IV school

Check Out: How to Get Student Loan Repayment Help

Methodology

To find the “best companies,” Credible looked at loan and lender data points from 12 categories to give you a well-rounded perspective on each of our partner refinancing lenders.

Here’s what we considered:

Interest ratesRepayment termsRepayment optionsFeesDiscountsCustomer service availabilityMaximum loan balancesWillingness to refinance parent loansEligibility criteriaCosigner release optionsWhether the minimum credit score is available publiclyWhether consumers could request rates with a soft credit check

Our hope is that this will be a win-win situation for you and us — we only want to get paid if you find a loan that works for you, not by selling your data. This means Credible will only get paid by the lender if you finish the refinancing process and a loan is disbursed. Additionally, Credible charges you no fees of any kind to compare your refinancing options.

Other student loan refinancing lenders to consider

Here are more student loan refinancing companies we evaluated. Keep in mind that these lenders are not offered through Credible, so you won’t be able to easily compare your rates with them on the Credible platform like you can our partner lenders.

LenderLoan terms (years)Max loan balance

View details>10, 20Undergrad: $249,000
Grad: $199,000Min. credit score:
Does not discloseLoan amount:
Up to $250,000Loan terms (years):
10, 20Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoMax. undergraduate Loan Balance:
$150,000 to $249,000Max. graduate Loan Balance:
$150,000 to $199,000Offers Parent PLUS Refinancing:
No

View details>5, 7, 10, 15Undergrad: $500,000
Grad: $500,000Rates:
fixed, variableMin. credit score:
Does not disclose Loan amount:
$60,000 to $350,000Cosigner release:
NoLoan terms (years):
5, 7, 10, 15, 20Fees:
NoneDiscounts:
Autopay, loyaltyEligibility:
Available in CA, CT, FL, MA, NY, OR, WYCustomer service:
Email, phoneSoft credit check:
YesMax. undergraduate loan balance:
$500,000Max. graduate loan balance:
$500,000

View details>10, 15, 20Undergrad: $249,000
Grad: $249,000Rates:
Fixed, variableMin. credit score:
Does not discloseLoan amount:
$10,000 to $250,000Cosigner release:
After 24 to 36 monthsLoan terms (years):
10, 15, 20Repayment options:
Military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesLoan servicer:
Student Loan Finance CorporationMax. undergraduate Loan Balance:
$150,000 to $249,000Max. graduate Loan Balance:
$200,000 to $249,000Offers Parent PLUS Refinancing:
Yes

View details>5, 7, 10, 15Undergrad: None
Grad: NoneMin. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Cosigner release:
Does not discloseLoan terms (years):
5, 7, 10, 15Repayment options:
Immediate repayment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
YesMax. undergraduate Loan Balance:
No maximumMax. graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

View details>5, 7, 10, 15, 20Does not discloseRates:
Fixed, variableMin. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Cosigner release:
YesLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Does not discloseFees:
NoneDiscounts:
AutopayEligibility:
Does not discloseCustomer service:
Email, phoneSoft credit check:
YesLoan servicer:
LendKey Technologies Inc.Max. undergraduate Loan Balance:
Does not discloseMax. graduate Loan Balance:
Does not discloseOffers Parent PLUS Refinancing:
No

View details>5, 10, 15Undergrad: $99,000
Grad: $150,000Min. credit score:
Does not discloseLoan amount:
Less than $150,000Loan terms (years):
5, 10, 15Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Does not discloseDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
YesMax. Undergraduate Loan Balance:
Less than $99,000Max. graduate Loan Balance:
Less than $150,000Offers Parent PLUS Refinancing:
Yes

View details>Does not discloseUndergrad: None
Grad: NoneMin. credit score:
Does not discloseLoan amount:
No maximumLoan terms:
Does not discloseRepayment options:
Academic deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
YesMax. undergraduate Loan Balance:
No maximumMax. graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
YesThe lenders in this table aren’t our partners. But you can use Credible to compare rates in 2 minutes from other lenders who offer student loan refinancing.

Compare Now

How to refinance student loans without a cosigner

If you’re ready to refinance your student loans without a cosigner, follow these four steps:

Check your credit. When you apply for refinancing, the lender will evaluate your credit to determine your creditworthiness — so it’s a good idea to check your credit beforehand to see where you stand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your credit score.Compare lenders and pick a loan option. Be sure to shop around and compare as many student loan refinance companies as you can to find the right loan for you. Consider not only interest rates but also repayment terms, any fees charged by the lender, and eligibility requirements. After you’ve done your research, pick the loan option that works best for your needs.Complete the application. Once you’ve chosen a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs. Also be prepared to provide information regarding the loans you want to refinance.Manage your payments. If you’re approved, continue making payments on your old loans while the refinance is processed. Afterward, you could consider signing up for autopay so you won’t miss any payments in the future — many lenders offer a rate discount to borrowers who opt for automatic payments.Keep in mind: While you can refinance both federal and private loans, refinancing federal student loans will cost you access to federal benefits and protections — such as income-driven repayment plans and student loan forgiveness programs.

Depending on your credit, you might qualify for a lower interest rate through refinancing. This means you could save money on interest and potentially pay off your loan faster. You can use our calculator below to see how much you can save by refinancing your student loans.

Step 1. Enter your loan balance

Loan balanceEnter the remaining amount of the loans you’d like to refinance

Step 2. Enter current loan information

Interest rateEnter the average annual interest rate of the loans you’d like to refinanceMonthly paymentEnter the monthly amount you currently pay on your loans (or enter remaining term)Remaining termEnter the amount of time left to repay your loan (or enter monthly payment)years

Step 3. Enter your new loan information to start calculating your savings

Interest rateEnter an estimated new interest rate.Monthly paymentEnter the monthly amount to pay on your new loan (or enter new loan term)New loan termEnter the amount of time you have to repay your loan (or enter monthly payment)yearsLifetime SavingsIncreased Lifetime Cost
New Monthly Payment>Monthly SavingsIncreased Monthly Cost
If you refinance your student loan at>
interest rate, you>can savewill pay an additional
monthly and pay off your loan by>.
The total cost of the new loan will be>.

Does refinancing make sense for you?

Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates

Checking rates won’t affect your credit score.

Check Out: Student Loan Repayment Calculator: Estimate Your Payoff Date

Pros of not using a cosigner when refinancing

Refinancing without a cosigner could be the right option for some borrowers, but it isn’t right for everyone. Here are a few potential benefits to keep in mind:

No need to find one: In some cases, borrowers might not know anyone with good enough credit to act as a cosigner. If you refinance without a cosigner, you won’t need to worry about this.No risk to your relationships: A cosigner shares responsibility for the loan — which means they’re on the hook if you can’t make your payments. If this happens, it could severely strain your relationship with your cosigner. By refinancing without a cosigner, you won’t risk potentially alienating any friends or family members.Only you are responsible for the loan: Without a cosigner, you’re the only one responsible for your refinanced loan. This means you can focus on repaying your loan without worrying about negatively affecting a cosigner along the way — which might feel financially empowering for some.

Learn More: When Student Loan Refi Is a Good Idea and When to Reconsider

Cons of not using a cosigner when refinancing

Could be hard to qualify on your own: If you have less-than-perfect credit, you might have a hard time getting approved for refinancing without a cosigner.Might not get the best rates: Even if you don’t need a cosigner to get approved, having one could get you a lower rate than you’d get on your own. Unless you have excellent credit, you might not qualify for the lowest rates advertised by lenders without a cosigner.Less motivation to stay on top of your payments: Some borrowers might need the extra motivation of having a cosigner to make on-time payments.

Check Out: Should I Pay Off My Student Loans or Invest in Stocks?

How cosigner release works

Some lenders offer a cosigner release option — so if you already have a cosigner, you might be able to remove them from the loan after meeting the requirements. Generally, you’ll have to make consecutive, on-time payments for a certain period of time and also meet the underwriting criteria on your own to qualify for cosigner release.

Here are Credible’s partner lenders that offer cosigner release:

Advantage After 36 monthsCitizensAfter 36 monthsCollege AveAfter 24 monthsCommonBond After 36 monthsEDvestinUAfter 36 monthsINvestEd After 48 months of on-time paymentsISL Education LendingAfter 24 monthsPenFed After 12 months

Learn More: How to Pay off Student Loans in 10 Years or Less

Frequently asked questions about refinancing without a cosigner

Here are the answers to a few commonly asked questions about refinancing without a cosigner:

Can you consolidate student loans without a cosigner?

Yes, you can consolidate student loans without a cosigner. Keep in mind that the terms consolidation and refinancing are often used interchangeably, but they mean something different for federal and private student loans.

Federal student loan consolidation: You can consolidate federal student loans into a Direct Consolidation Loan. While this won’t change your interest rate, you can extend your repayment term up to 30 years to reduce your monthly payments — though remember that you’ll pay more interest over time. Unlike with refinancing, you don’t need good credit to federally consolidate your loans, and you don’t need to worry about having a cosigner. You also won’t lose access to your federal benefits.Private student loan refinancing: Also known as private student loan consolidation, this process lets you combine multiple student loans — leaving you with one loan and payment to manage. Depending on your credit, you might qualify for a better interest rate, which can save you money on your overall loan cost. Or you could opt to extend your repayment term to lower your monthly student loan payments. Keep in mind that if you refinance federal loans, you’ll no longer have access to federal protections.

Check Out: How to Consolidate Your Student Loans

What do I do if I can’t get approved for a student loan?

If you can’t get approved for a student loan without a cosigner, you have a couple of options:

Improve your credit. If you can wait to refinance, spend some time building your credit first. There are several ways to potentially do this, such as making on-time payments on all of your bills, paying down credit card balances, or becoming an authorized user on the credit card account of someone you trust.Apply with a cosigner. If there’s no way for you to get approved on your own, you might need to refinance with a cosigner. Keep in mind that a cosigner can be anyone with good credit — such as a parent, other relative, or trusted friend — who is willing to share responsibility for the loan. Also remember that you might be able to remove your cosigner from the loan later on if you qualify for cosigner release.

Learn More: Fixed or Variable Student Loan: Which is Right for You?

Can a cosigner be removed from a student loan?

Yes, there are two ways a cosigner can be removed from a loan:

Cosigner release: Several lenders provide a cosigner release option. This means you could have your cosigner removed from the loan after meeting certain conditions — in general, you’ll need to make consecutive, on-time payments for a specific period of time and meet the underwriting criteria on your own.Refinancing again: You can also remove a cosigner by refinancing your student loan again.

Check Out: How Long It Takes to Pay Off Student Loans

How much does it cost to refinance student loans?

There’s no upfront cost to refinance your student loans. However, keep in mind that you’ll need to pay any interest that accrues on the loan as well as any fees charged by the lender, such as late fees.

Tip: If you want to keep your repayment costs low, it’s a good idea to choose the shortest repayment term you can afford. This way, you’ll pay less in interest over time.

If you decide to refinance your student loans, remember to consider as many lenders as possible to find the right loan for you. Credible makes this easy: You can compare your prequalified rates from multiple lenders in two minutes — without affecting your credit.

Find out if refinancing is right for you

Compare actual rates, not ballpark estimates – Unlock rates from multiple lenders in about 2 minutesWon’t impact credit score – Checking rates on Credible won’t impact your credit scoreData privacy – We don’t sell your information, so you won’t get calls or emails from multiple lendersSee Your Refinancing Options
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Kevin Smith

corazoncrm.org

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What Happens If You Miss a Mortgage Payment?

October 28, 2021 Kevin Smith

While nobody wants to miss a mortgage payment, it can happen — especially if money is tight one month.

Generally, missed payments can cause your credit score to plunge and lead to late fees. Multiple missed payments can even lead to foreclosure, further damaging your credit and leaving you with no home. But it doesn’t all occur at once.

Here’s what happens if you miss a mortgage payment:

The typical timeline of missed mortgage paymentsCOVID-19 and mortgage foreclosuresHow does a late mortgage payment affect my credit score?How much will a mortgage late fee be?How can I skip a mortgage payment without penalty?

The typical timeline of missed mortgage payments

A mortgage payment that’s overdue by just a few days might not have any impact on your credit. That’s because most loan servicers offer a grace period where you can make a payment within 15 days after the due date without penalties. After the grace period, it may charge you a late fee, which should be explained in your loan documents.

But failing to make a payment altogether can negatively affect your credit and the home loan.

One missed mortgage payment

Your servicer will likely report the missed payment to the credit bureaus once it’s 30 days late. This can hurt your credit score. Generally, a late payment can cause more damage for people with higher credit scores.

If you haven’t made a payment for 36 days, your loan servicer is required to contact you — though it may reach out sooner.

Good to know: The servicer can’t start foreclosure proceedings right away, but the late payment is a serious matter nonetheless.

Two missed mortgage payments

Once you’re 45 days past due, your loan servicer may assign someone to your account. They’ll contact you and let you know about your options.

After 60 days — or two missed mortgage payments — you’ll incur a second late fee. The late payment will also be reported to the credit bureaus.

Don’t Miss: What to Do If You Fall Behind on Mortgage Payments

Three missed mortgage payments

After three missed payments, your loan servicer will likely send another letter known as a demand letter or notice to accelerate. The letter acts as a notice to bring your mortgage current or face foreclosure proceedings.

Additionally, your loan servicer will report the late payment to the credit bureaus, which may cause your credit score to drop even more.

Four missed payments

Once you’re 120 days past due, if you haven’t arranged to make repayments with your bank, your loan servicer can start the legal foreclosure process. It can also add attorney fees to your balance.

The loan servicer’s attorney will schedule a home sale and notify you of the foreclosure date. This date varies with each state, but it may be as soon as two or three months after receiving your demand letter.

Good to know: If you make arrangements with your lender or pay the total amount due before the date of sale, you may be able to keep your home.

The loan servicer will also report the newest late payment to the credit bureaus, and your credit score may drop once again. Each late payment can stay on your credit history for up to seven years.

To find a great mortgage rate, be sure to shop around. Credible lets you do this easily — compare home loans from all of our partner lenders in one place. It’s free, and checking rates with us will never affect your credit score.

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COVID-19 and mortgage foreclosures

Since early 2020, more than 7 million homeowners have taken advantage of mortgage forbearance programs to keep their accounts in good standing. Additionally, the U.S. government put a moratorium on foreclosures through the first half of 2021.

Although both measures helped foreclosure activity reach historic lows in 2020, homeowners may need to find another form of assistance. The foreclosure ban expired July 31, 2021, and about 1.75 million homeowners were still in some sort of forbearance program.

You might be able to extend your forbearance protection or get your account current by calling your mortgage lender and setting up a plan.

This can keep your account and credit in good standing. But if you can’t restart payments, your loan servicer will need to take extra steps — such as evaluating you for assistance programs — before starting the foreclosure process.

Mortgage forbearance

With mortgage forbearance, your loan servicer agrees to temporarily pause your monthly mortgage payments for a certain period of time. It also won’t start the foreclosure process.

During the coronavirus pandemic, lenders can report that your mortgage account is in forbearance. But, per the CARES Act, your account must be marked as “current” if it was in good standing before entering forbearance.

If your loan is federally backed, you can call your loan servicer and request pandemic-related mortgage forbearance until Sept. 30, 2021. Extensions may apply, too:

Fannie Mae and Freddie Mac loans: Conventional loan borrowers may request an extension for a maximum of 18 months of forbearance. You may be eligible for the extension if you entered forbearance before Feb. 28, 2021.Government-backed loans: Borrowers with a loan backed by the FHA, VA, or USDA may request an extension as long as they enrolled in forbearance on or before June 30, 2020.

Loan repayment options

If you’re 120 days or more past due on your mortgage payments or you’re about to exit a mortgage forbearance program, your loan servicer must reach out to discuss options.

Here’s how you may be able to rehabilitate your account and avoid foreclosure:

Defer payments: You can resume regular mortgage payments and move any missed or suspended payments to the end of the loan term. This option is usually available for Fannie- and Freddie-backed loans, VA loans, FHA loans, and USDA loans.Modify the loan terms: The servicer may agree to a loan modification, where you change the loan’s length or interest rate to make the payments more affordable. On federally backed loans, your servicer may be able to lower your mortgage payment by 25% or more.Enter a repayment plan: You can also create a repayment plan with your loan servicer if you have a conventional mortgage, FHA loan, USDA loan, or VA loan. You’ll spread your unpaid balance over a certain period of time — such as 12 months — on top of your regular mortgage payments. This will temporarily result in higher monthly payments.Reinstate the loan: This option lets you pay back the outstanding balance all at once. Under all federally backed mortgage programs, loan servicers can’t require you to pay off your forbearance balance with a lump sum. But you can choose to do this if you have the funds.

Foreclosure safeguards

The loan payment options mentioned above may work for borrowers who are financially sound. But the loan servicer may be able to start the foreclosure process if a borrower still can’t make payments after forbearance ends or after missing four payments.

However, homeowners are protected by three new safeguards established by the Consumer Financial Protection Bureau. Before starting foreclosure, the loan servicer must:

Ask the borrower to complete a loss mitigation application. The loan servicer must give you the opportunity to pursue loss mitigation, which may prevent foreclosure. Loss mitigation options include some of the repayment options we’ve already discussed (such as loan modification and repayment plans) as well as a short sale.Confirm the property is abandoned. If loss mitigation doesn’t work, the loan servicer may start foreclosure proceedings after confirming a property is abandoned under local and state laws.Reach out to the borrower. The loan servicer will also need to make a reasonable effort to reach the borrower.

These new safeguards apply on top of existing rules that bar loan servicers from starting the foreclosure process until a homeowner is at least 120 days past due on a home loan. They’ll be in effect from Aug. 31, 2021, to Dec. 31, 2021.

How does a late mortgage payment affect my credit score?

When you’re at least 30 days behind on mortgage payments, your loan servicer reports the information to the credit bureaus. The late payment can remain on your credit reports for up to seven years, and it may affect your credit score during this time.

Missing several payments in a row can damage your credit score more than missing only one payment. And multiple missed payments could result in foreclosure, which is one of the most damaging negative marks you can have on your credit.

How much will a mortgage late fee be?

Homeowners usually have a grace period of 15 days after the due date to make their mortgage payment. After that point, you may pay a late fee for each month that you miss a payment.

The late fee is set by state law, but it usually equals 3% to 6% of your monthly payment. So, if your mortgage payment is usually $1,000 and your late fee is 5%, then you may be on the hook for an extra $50 for each month you go without paying.

How can I skip a mortgage payment without penalty?

If you stop making mortgage payments but you’re in a foreclosure-prevention program — such as forbearance, loan modification, or a short sale — then you might be able to avoid foreclosure and the credit hit. Perform some research and request one of these options when you’re having financial problems.

The post What Happens If You Miss a Mortgage Payment? appeared first on Credible.

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Kevin Smith

corazoncrm.org

Loans Serivces

How to Pay Off $80,000 in Student Loans

October 26, 2021 Kevin Smith

Paying for college can be expensive. While the average student loan debt for college students is $39,351, it isn’t uncommon for students to leave school with $80,000 or more in education debt.

Tackling this amount of student loan debt can be difficult and time consuming. For example, if you had $80,000 in federal student loans made payments on the standard 10-year repayment plan with a 6.22% interest rate, you’d end up with a monthly payment of $897 and a total repayment cost of $107,643.

The good news is that there are multiple strategies that could help you pay off $80,000 in student loans more easily — and sometimes, more quickly as well.

Here are five ways to pay off $80,000 in student loans:

Refinance your student loansConsider using a cosigner when refinancingExplore income-driven repayment plansPursue loan forgiveness for federal student loansAdopt the debt avalanche or debt snowball method

1. Refinance your student loans

If you refinance your student loans, you’ll take out a new private loan to pay off your old loans, leaving you with just one loan and payment to manage. Depending on your credit, you might qualify for a lower interest rate through refinancing — this could save you hundreds or even thousands of dollars on interest as well as potentially help you pay off your loans faster.

Or you could opt to extend your repayment term to reduce your monthly payments and lessen the strain on your budget. Just keep in mind that by choosing a longer term, you’ll pay more in interest over time.

Keep in mind: While you can refinance both federal and private loans, refinancing federal student loans will cost you access to federal benefits and protections — such as income-driven repayment plans and student loan forgiveness programs.

If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in just two minutes.

LenderFixed rates from (APR)Variable rates from (APR)Loan terms (years)Loan amounts

View details>
4.54%+N/A10, 15, 20$7,500 up to up to $200,000
(larger balances require special approval)Fixed APR:
4.54%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$7,500 up to $500,000Loan terms (years):
10, 15, 20Max. undergraduate loan balance:
$250,000 – $500,000Time to fund:
4 monthsRepayment options:
Immediate repayment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a resident of KentuckyCustomer service:
PhoneSoft credit check:
NoCosigner release:
After 36 monthsLoan servicer:
Kentucky Higher Education Student Loan CorporationMax. graduate loan balance:
$250,000 – $500,000Credible Review:
Advantage Education Loan reviewOffers Parent PLUS Refinancing :
Yes

View details>
2.15%+
1.87%+5, 7, 10, 15, 20$10,000 up to $250,000
(depending on degree)Fixed APR:
2.15%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$10,000 to $400,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of TexasCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 – $149,000Max. Graduate Loan Balance:
$200,000 – $400,000Offers Parent PLUS Refinancing:
Does not disclose

View details>
2.44%+1
2.24%+15, 7, 10, 15, 20$10,000 to $500,000
(depending on degree and loan type)Fixed APR:
2.44%+1Variable APR:
2.24%+1Min. credit score:
Does not discloseLoan amount:
$10,000 to $750,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
Autopay, loyaltyEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $150,000Offers Parent PLUS Refinancing:
Yes

View details>
2.99%+2
2.94%+25, 7, 10, 12, 15, 20$5,000 to $300,000
(depending on degree type)Fixed APR:
2.99%+2Variable APR:
2.94%+2Min. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Loan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
Military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
All states except for MECustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
College Ave Servicing LLCMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $300,000Offers Parent PLUS Refinancing:
Yes

View details>
2.16%+
2.11%+5, 7, 10, 15, 20$5,000 to $500,000Fixed rate:
2.44%+1Variable rate:
2.24%+1Min. credit score:
680Loan amount:
$5,000 to $500,000Cosigner release:
YesLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Available in all states, except MS and NVCustomer service:
Email, phone, chatSoft credit check:
YesLoan servicer:
FirstMarkMax. undergraduate loan balance:
$500,000Max. graduate loan balance:
$500,000Offers Parent PLUS refinancing:
YesMin. income:
$65,000 (for 15- and 20-year products)

View details>
1.8%+5
1.8%+55, 10, 15, 20$1,000 to $250,000Fixed APR:
1.8%+5Variable APR:
1.8%+5Min. credit score:
700Loan amount:
$7,500 to $200,000Loan terms (years):
5, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and submit two personal referencesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Granite State Management & Resources (GSM&R)Max. Undergraduate Loan Balance:
$150,000 to $249,000Max. Graduate Loan Balance:
$150,000 to $199,000Offers Parent PLUS Refinancing :
Yes

View details>
2.47%+3
2.39%+35, 7, 10, 12, 15, 20Minimum of $15,000Fixed APR:
2.47%+3Variable APR:
2.39%+3Min. credit score:
680Loan amount:
No maximumLoan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
ForbearanceFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved schoolCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
MohelaMax. Undergraduate Loan Balance:
No maximumMax. Graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

View details>
3.47%+4
2.44%+45, 10, 15, 20$5,000 – $250,000Fixed APR:
3.47%+4Variable APR:
2.44%+4Min. credit score:
670Loan amount:
$5,000 to $250,000Loan terms (years):
5, 10, 15, 20Repayment options:
Academic deferment, military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must be U.S. citizen or permanent residentCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
YesMax undergraduate loan balance:
$250,000Max graduate loan balance:
$250,000Offers Parent PLUS refinancing:
Yes

View details>
2.24%+7N/A5, 7, 10, 12, 15, 20Up to $300,000Fixed APR:
2.24%+7Variable APR:
N/AMin. credit score:
670Loan amount:
Up to $300,000Loan terms (years):
5, 7, 10, 15, 20Time to fund:
Usually one business dayRepayment options:
Academic deferral, military deferral, forbearance, death/disability dischargeFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsMax. undergraduate loan balance:
$300,000Max. graduate balance:
$300,000Offers Parent PLUS loans:
YesMin. income:
None

View details>
3.05%+
3.05%+7, 10, 15$10,000 up to the total amount of qualified education debtFixed APR:
3.05%+Variable APR:
3.05%+Min. credit score:
670Loan amount:
$10,000 up to the total amountLoan terms (years):
7, 10, 15Repayment options:
Military deferment, loans discharged upon death or disabilityFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
AESMax. Undergraduate Loan Balance:
No maximumMax. Gradaute Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

View details>
2.89%+N/A5, 8, 12, 15$7,500 to $300,000Fixed APR:
2.89%+Variable APR:
N/AMin. credit score:
670Loan amount:
$7,500 to $300,000Loan terms (years):
5, 8, 12, 15Repayment options:
Does not discloseFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen and have and at least $7,500 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 12 monthsLoan servicer:
PenFedMax. Undergraduate Loan Balance:
$300,000Max. Graduate Loan Balance:
$300,000Offers Parent PLUS Refinancing:
Yes

View details>
2.69%+N/A5, 10, 15$7,500 up to $250,000
(depending on highest degree earned)Fixed APR:
2.69%+Variable APR:
N/AMin. credit score:
680Loan amount:
$7,500 to $250,000Loan terms (years):
5, 10, 15Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000Customer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Rhode Island Student Loan AuthorityMax. Undergraduate Loan Balance:
$150,000 – $249,000Max. Graduate Loan Balance:
$200,000 – $249,000Offers Parent PLUS Refinancing:
Yes

View details>
2.49%+6
1.99%+65, 7, 10, 15, 20$5,000 up to the full balance of your qualified education loansFixed APR:
2.49%+6Variable APR:
1.99%+6Min. credit score:
Does not discloseLoan amount:
$5,000 up to the full balanceLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, military defermentFees:
NoneDiscounts:
Autopay, loyaltyEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
NoMax undergraduate loan balance:
No maximumMax graduate loan balance:
No maximumOffers Parent PLUS refinancing:
YesCompare personalized rates from multiple lenders without affecting your credit score. 100% free!

Compare Now

2. Consider using a cosigner when refinancing

Most lenders require you to have good to excellent credit to qualify for student loan refinancing — a good credit score is usually considered to be 700 or higher. There are also several lenders that offer refinancing for bad credit, but these loans typically have higher interest rates compared to good credit loans.

If you have poor credit and are struggling to get approved, consider applying with a creditworthy cosigner to improve your chances. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

Tip: A cosigner can be anyone with good credit who is willing to share responsibility for the loan. For example, you could ask a parent, another relative, or a trusted friend to cosign.

Just keep in mind that if you can’t make your payments, your cosigner will be liable — this could also damage their credit.

Learn More: Best Student Refinance Companies: Reviewed and Rated

3. Explore income-driven repayment plans

If you have federal student loans, signing up for an income-driven repayment (IDR) plan could make your loan payments easier to manage. On an IDR plan, your payments are based on your income — usually 10% to 20% of your discretionary income. Additionally, you could have any remaining balance forgiven after 20 to 25 years, depending on the plan.

Here’s how the four main IDR plans compare to a few other federal repayment plan options:

Repayment planWho’s eligible?Monthly paymentRepayment termsEligible for loan forgiveness?Standard repayment planAny borrower with Direct or FFEL LoansAmount when payments are spread equally over 10 years (usually $50 minimum) 10 yearsNoGraduated repayment planAny borrower with Direct or FFEL LoansDepends on loan amount
(payments start low and increase every 2 years)10 yearsNoExtended repayment planAny borrower with more than $30,000 in Direct or FFEL LoansFixed: Spread evenly over up to 25 years

Graduated: Depends on loan amount (start low and increase every 2 years)Up to 25 yearsNoIncome-Based Repayment (IBR)Borrowers with partial financial hardship

(no Parent PLUS Loans)For borrowers who took out loans after July 1, 2014: 10% of discretionary income
(never more than 10-year plan)

For borrowers who took out loans before July 1, 2014: 15% of discretionary income
(never more than 10-year plan)For borrowers who took out loans after July 1, 2014: 20 years

For borrowers who took out loans before July 1, 2014: 25 yearsYesPay As You Earn (PAYE)Must have partial financial hardshipMust have borrowed on or after Oct. 1, 200710% of discretionary income
(never more than 10-year plan)20 yearsYesRevised Pay As You Earn (REPAYE)Any borrower
(no Parent PLUS Loans)10% of discretionary income
(no cap)20 years
(25 years if repaying grad school debt)YesIncome Contingent Repayment (ICR)Any borrower
(Parent PLUS Loans must be consolidated)20% of discretionary income
(or income-adjusted payment on 12-year plan)25 yearsYes

Check Out: PAYE vs. REPAYE: Which Repayment Plan Is Right for You?

4. Pursue loan forgiveness for federal student loans

There are several forgiveness programs available to federal student loan borrowers. These programs generally require you to be employed in a certain field and to make qualifying payments for a specific period of time.

For example: If you work for a nonprofit or government organization, you might be eligible for Public Service Loan Forgiveness (PSLF) after making qualifying payments for 10 years.

Other professions that might qualify for federal forgiveness programs include:

DentistsDoctorsLawyers NursesPharmacistsTeachersKeep in mind: Unfortunately, private student loan forgiveness doesn’t exist. However, there are other options that could help you more easily repay your private loans — such as refinancing.

Learn More: Private Student Loan Consolidation

5. Adopt the debt avalanche or debt snowball method

There are also some situations where you might simply have to concentrate on paying off your loans as quickly as possible — such as if you have multiple loans and aren’t eligible for forgiveness. Here are a couple of payoff strategies that could help:

Debt avalanche method

With the debt avalanche method, you’ll focus on paying off your loan with the highest interest rate first while making the minimum payments on your other loans.

Once this first loan is paid off, you’ll move on to the loan with the next-highest interest rate — continuing until all of your loans are repaid.

Tip: The debt avalanche method can help you save money on interest — but it can also take a while to see your results. If you’re more motivated by small wins, you might want to consider the debt snowball method instead.

Debt snowball method

With the debt snowball method, you’ll target your smallest loan first as you continue making the minimum payments on your other loans.

After this first loan is repaid, you’ll move on to the next-smallest loan — continuing until all of your loans have been paid off.

Tip: The debt snowball method typically provides faster results than the debt avalanche, which can provide motivation through your payoff journey.

But if you don’t mind waiting to experience a win and want to save more on interest, the debt avalanche method might be a better fit.

Check Out: How Often Can You Refinance Student Loans?

Frequently asked questions

Here are the answers to a few commonly asked questions about paying off $70,000 in student loans:

How long does it take to pay off $70,000 in student loans?

This will mainly depend on the type of student loans you have and your repayment plan.

Federal student loans: Depending on the repayment plan you choose, it could take 10 to 25 years to repay your federal loans. You could also choose to consolidate your loans into a Direct Consolidation Loan and extend your term up to 30 years.Private student loans: Repayment terms on private loans usually range from five to 20 years, depending on the lender. You might also be able to reduce your repayment time by refinancing to a shorter term or by making extra payments on your loans.

Can I file for bankruptcy to eliminate my student loan debt?

Yes, you can file bankruptcy for student loan debt. However, it could be hard to actually have your loans discharged. If you file for Chapter 7 or Chapter 13 bankruptcy, you’ll have to prove to the court that repaying your loans would cause an undue hardship for you and your dependents.

If the court decides in your favor, your loans could be:

Fully dischargedPartially discharged with you responsible for the remainder of the balanceAdjusted with different terms to make repayment easier (such as a lower interest rate)Tip: Bankruptcy will severely damage your credit and should be considered a last resort. If you’re thinking about filing for bankruptcy, it’s a good idea to discuss your situation with a lawyer first so you can be sure it’s the right decision for your finances.

re student loans forgiven after 20 years?

This depends on the type of loans you have.

If you have federal student loans and sign up for an IDR plan, you could have any remaining balance forgiven after 20 to 25 years. There are also other programs that offer forgiveness sooner — for example, if you’re eligible for PSLF, you could have your loans forgiven after 10 years.If you have private student loans, you aren’t eligible for forgiveness. If you have good credit, it could be a good idea in this case to refinance for a lower interest rate so you can save money on interest and possibly shorten your repayment time.

Do children inherit student debt?

Typically no. Here’s what generally happens with student loan debt after death:

Federal student loans are discharged upon the death of the primary borrower. If you have a Parent PLUS Loan, it will be discharged if you or the student who benefitted from it passes away.

Private student loans are often discharged similarly to federal loans — though keep in mind that this is at the discretion of the lender. If the lender doesn’t discharge the loans, they’ll be considered part of your estate and paid off by your assets.

The post How to Pay Off $80,000 in Student Loans appeared first on Credible.

Kevin Smith

corazoncrm.org

Loans Serivces

How to Pay Off $70,000 in Student Loans

October 26, 2021 Kevin Smith

While the average student loan debt for college students is $39,351, some students might end up leaving school with $70,000 or more in student loans.

Paying off this amount in student loans can feel overwhelming. For example, if you had $70,000 in federal student loans and made payments under the standard 10-year repayment plan with a 6.22% interest rate, you’d end up with a monthly payment of $785 and a total repayment cost of $94,188.

Thankfully, there are several strategies that could help you more easily manage $70,000 in student loans.

Here’s how to pay off $70,000 in student loans:

1. Refinance your student loans

Student loan refinancing is the process of paying off your old loans with a new loan. Depending on your credit, you might get a lower interest rate through refinancing, which could save you money on interest and even potentially help you pay off your loans faster.

Or you could opt to extend your repayment term to reduce your monthly payments and lessen the strain on your budget — though keep in mind that this means you’ll pay more in interest over time.

Keep in mind: You can refinance both federal and private loans. However, refinancing your federal student loans will cost you access to federal benefits and protections — such as income-driven repayment plans and student loan forgiveness programs.

If you decide to refinance your student loans, be sure to consider as many lenders as possible so you can find the right loan for your situation. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in just two minutes.

LenderFixed rates from (APR)Variable rates from (APR)Loan terms (years)Loan amounts

Compare Now

2. Consider using a cosigner when refinancing

You’ll typically need good to excellent credit to get approved for refinancing — a good credit score is usually considered to be 700 or higher. There are also several lenders that offer refinancing for bad credit, but these loans tend to come with higher rates compared to good credit loans.

If you have poor or fair credit and are struggling to get approved, consider applying with a cosigner. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

Tip: A cosigner can be anyone with good credit — such as a parent, another relative, or a trusted friend — who is willing to share responsibility for the loan. Just keep in mind that this means they’ll be on the hook if you can’t make your payments.

Learn More: Best Student Refinance Companies: Reviewed and Rated

3. Explore income-driven repayment plans

If you have federal student loans, signing up for an income-driven repayment (IDR) plan could be a good idea. On an IDR plan, your payments are based on your income — typically 10% to 20% of your discretionary income.

Additionally, you could have any remaining balance after 20 to 25 years, depending on the plan.

Tip: Signing up for an IDR plan might significantly reduce your monthly payments. However, keep in mind that by extending your repayment term, you could end up paying much more in interest over time.

Here’s how the four main IDR plans compare to a few other federal repayment plan options:

Graduated: Depends on loan amount (start low and increase every 2 years)Up to 25 yearsNoIncome-Based Repayment (IBR)Borrowers with partial financial hardship

(no Parent PLUS Loans)For borrowers who took out loans after July 1, 2014: 10% of discretionary income
(never more than 10-year plan)

For borrowers who took out loans before July 1, 2014: 15% of discretionary income
(never more than 10-year plan)For borrowers who took out loans after July 1, 2014: 20 years

Check Out: PAYE vs. REPAYE: Which Repayment Plan Is Right for You?

4. Pursue loan forgiveness for federal student loans

There are several student loan forgiveness programs available to federal student loan borrowers. Most of these require that you work in a certain field and make qualifying payments for a specific amount of time.

For example: If you are employed by a nonprofit or government agency and make qualifying payments for 10 years, you might qualify for Public Service Loan Forgiveness (PSLF).

Or if you’re a teacher who works at a low-income school, you could be eligible for the Teacher Loan Forgiveness Program.

Some other occupations that might qualify for a forgiveness program include:

Learn More: How Often Can You Refinance Student Loans?

5. Adopt the debt avalanche or debt snowball method

If you have multiple student loans and aren’t eligible for refinancing or forgiveness, you might just need to concentrate on paying off your loans as quickly as possible. Here are two strategies that could help:

Debt avalanche method

With the debt avalanche method, you’ll focus on paying off your loan with the highest interest rate first while continuing to make the minimum payments on your other loans.

You’ll then move on to the loan with the next-highest interest rate — continuing until all of your loans are paid off.

Tip: The debt avalanche method can save you money on interest charges — but it can take a while to see any results. If you’re more motivated by small wins, the debt snowball method might be a better fit for you.

Debt snowball method

With the debt snowball method, you’ll focus on paying off your smallest loan first while making the minimum payments on your other loans.

After you repay this loan, you’ll move on to the next-smallest loan — continuing until all of your loans have been paid off.

Tip: The debt snowball method can be particularly motivating since it typically offers quick results. But if you would rather save money on interest and don’t mind waiting to see your savings, the debt avalanche method could be a better choice.

Check Out: Private Student Loan Consolidation

Frequently asked questions

Here are the answers to a few commonly asked questions about paying off $70,000 in student loans:

How long does it take to pay off $70k student loans?

This will depend on the type of student loans you have and what repayment plan you choose.

Federal student loans: You could have 10 to 25 years to repay federal loans, depending on the repayment plan you choose. You could also opt to consolidate your loans into a Direct Consolidation Loan and extend your repayment term up to 30 years.Private student loans: Terms on private loans typically range from five to 20 years, depending on the lender.

Can I file for bankruptcy to eliminate my student loan debt?

Yes, you can file bankruptcy for student loan debt. However, it can be difficult to actually have your loans discharged. If you file for Chapter 7 or Chapter 13 bankruptcy, you’ll have to prove to the court that paying them would cause an undue hardship for you and your dependents, which generally means that you wouldn’t be able to afford basic needs if you continue to repay the debt.

If the court decides in your favor, your loans could be:

Fully dischargedPartially discharged with you responsible for the remainder of the balanceAdjusted with different terms to make repayment easier (such as a lower interest rate)Tip: Filing for bankruptcy will severely damage your credit and should be treated as a last resort. If you’re thinking about filing for bankruptcy, it’s a good idea to consult with an attorney to make sure it’s the best choice for your financial situation.

re student loans forgiven after 20 years?

This depends on the type of student loans you have.

If you have federal student loans, you could be eligible for forgiveness after 20 to 25 years on an IDR plan. There are also other forgiveness programs that offer forgiveness sooner — for example, you could have your loans forgiven after 10 years if you qualify for PSLF.If you have private student loans, you aren’t eligible for forgiveness. In this case, you might consider refinancing your loans for a lower interest rate to potentially reduce your repayment time.

Do children inherit student debt?

Generally no. Here’s what you can typically expect:

Federal student loans are discharged upon the death of the borrower. If you have a Parent PLUS Loan, it will be discharged if you or the student who benefitted from it passes away.Private student loans are often discharged similarly to federal loans. However, keep in mind that this is at the discretion of the lender. If the lender doesn’t offer a death discharge option, then your private loans will be considered part of your estate and will be paid off by your assets.

The post How to Pay Off $70,000 in Student Loans appeared first on Credible.

Kevin Smith

corazoncrm.org

Loans Serivces

What Is a Townhouse? Everything You Want to Know

October 21, 2021 Kevin Smith

Townhouses are a common type of housing, and you’ve almost certainly seen your share of townhouse communities — or, at the very least, a row of townhomes lining a street — where you live. This distinct building style shares many similarities with detached homes and condos, but there are also a number of features that set townhouses apart.

Here’s what you need to know about townhouses and how they compare to condos and single-family houses:

What is a townhouse?Townhouse vs. condo vs. housePros and cons of a townhouseTips for buying a townhouse in 2021Should I buy a townhouse?

What is a townhouse?

A townhouse is an individually owned, residential home — usually multi-level — that shares a wall with at least one other home. Because they’re often constructed side by side, townhouses are sometimes referred to as row houses, particularly when located in a dense urban area.

The owner of a townhome owns both the structure and the land it sits on. In some cases, townhouse clusters are part of a larger townhome community, which is often managed by a homeowners association that sets the rules for the community, collects membership fees from the homeowners, and arranges for maintenance.

Townhouse vs. condo vs. house

Although townhouses, single-family houses, and condos all serve as residential homes and can be financed with a mortgage, they’re actually quite different. Here’s a breakdown of the primary differences between these three property types:

TownhouseDetached houseCondoType of ownershipFee simple ownership: includes the structure and the landFee simple ownership: includes the structure and the landCondo ownership: includes the space inside the condo but not the outside space or landCost to buyUsually costs less than a detached house but more than a condoUsually the most expensive optionUsually the least expensive optionFinanceStandard mortgage financingStandard mortgage financingSubject to financing restrictionsNeighborsAt least one shared wallNo shared wallsAt least one shared wallUpkeepYou’re responsible for the exterior and interior of your home, plus any shared walls.You’re responsible for all maintenanceYou’re only responsible for interior maintenance, such as plumbing; the condo association takes care of common areasInsuranceStandard homeowners insurance requiredStandard homeowners insurance requiredCondo (HO-6) insurance required; condo association policy insures common areas and exterior of buildingAmenitiesSometimes includes amenities, if part of a planned communitySometimes includes amenities, if part of a planned communityOften includes amenities

Any property you buy has rights of ownership associated with it, but some properties have more rights than others:

Fee-simple ownership: When you buy a detached home or townhome, you receive fee-simple ownership. This is the least restrictive type of ownership. It allows you to use your house, yard, and any other structures on your land as you wish, as long as you act within the law and abide by HOA rules, if applicable.Condominium ownership: Condo owners have fewer ownership rights than owners of houses and townhouses. What they own individually is the space between the exterior walls of their unit, but not the exterior structure of the unit. They might also be entitled to exclusive use of amenities, like a patio or parking space, located in a common area but reserved specifically for their own use.

Read: Condos vs. Houses: How to Decide

Financing

Detached homes and townhouses are generally easier to finance than condos are. That’s because when you buy a detached home or townhouse, you buy the house and land it sits on.

When you buy a condo, the agency backing your mortgage loan — Fannie Mae, for instance — must approve or “warrant” the building or community before it’ll sign off on financing. When it does, it’ll likely be at a higher interest rate than you’d get with a house or townhouse.

Why the higher interest rate? Mortgage rates on condos are usually higher since the lender has to take on additional risk. With a townhouse, the lender only has to worry about you defaulting on your mortgage. But with a condo, it also has to consider the fact that other condo owners in your building might default on their loans and HOA dues as well. Such defaults could threaten the financial viability of the complex and, in turn, negatively impact your condo’s value.

Pros and cons of a townhouse

Every type of home has pros and cons. Here are some to consider before you buy a townhouse:

Pros

Less expensive than a detached homeSame financing options and ownership rights as a detached homeLess yard to maintainA sense of community

Cons

Less privacy than a detached homeOften subject to HOA restrictions and feesLimited yard sizeFewer style choices

Tips for buying a townhouse in 2021

The process of buying a townhouse compared to a single-family house is relatively similar, but you’ll want to be especially considerate of the following:

Budget: In addition to the home price and closing costs, factor in HOA fees. Make sure these costs don’t send you over budget.HOA: An HOA protects a community’s property values by enforcing certain standards. These standards include appearance and upkeep of your unit, the kinds of structures you can construct in the yard, and whether you can keep a boat or RV on your property. Ask yourself if these policies are overly constricting.Amenities: Amenities like a pool, fitness center, and clubhouse can make a townhouse community a more enjoyable place to live, but you’ll pay to maintain them as part of your HOA dues. Decide whether you’d use them enough to justify the expense.Neighbors: Because townhouses are attached, you’ll share walls with at least one neighbor, and you’ll live in close proximity to all your neighbors. Living so close together can foster a sense of community, but you may not be comfortable with the noise or lack of privacy. An end unit will give you slightly more privacy.Future plans: Consider your life stage and think about how happy you’ll be in a townhouse over the long term. Ask yourself if it will suit your needs a few years from now, and take into consideration your family and financial goals.

Should I buy a townhouse?

A townhouse could be a great choice if you’re seeking a smaller home with a yard that requires minimal upkeep. Perhaps paying HOA dues and the lack of privacy are small compromises when compared to the benefits of owning an easy-to-maintain home in full.

If, on the other hand, the thought of homeownership conjures images of lots of space and privacy, where you can do whatever you want without neighbors or HOAs interfering, a detached home might be a better choice.

And, if all exterior maintenance is a deal breaker, consider buying a condo instead.

If you’re looking to purchase your home the traditional way, Credible can help you compare prequalified rates from all of our partner lenders in just a few minutes. It’s simple and secure — and you don’t even have to leave our platform.

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The post What Is a Townhouse? Everything You Want to Know appeared first on Credible.

Kevin Smith

corazoncrm.org