Refinance Student Loans
Refinance student loans are getting to be very competitive
these days. When you are applying for a refinance
student loan you want to be sure to get the best interest
rate you can, you’ll be amazed to see what a
difference a slight change in an interest rate can
make. So we recommend you use our Refinance Loans
site to do just that.
Comparing student loans of different lenders is often
the most difficult part of student loan shopping.
Firstly, it is important to keep in mind that student
loan packages consist of more than interest rates.
They consist of a quoted rate, points and often-other
hidden charges. Points are an up-front fee paid to
the lender at closing. Each point equals one percent
of the loan amount. Points are charged, or paid, to
lower or increase the rate on the loan. Most lenders
will allow you to choose amongst a variety of rate
and point combinations for the same loan product.
Therefore, when comparing rates of different lenders,
make sure you compare also the associated points.
Closing costs typically consist of loan related fees;
title and escrow charges, government recording and
transfer charges and can add thousands of dollars
to the cost of your refinance student loan. When comparing
lenders it is important to compare loan related fees
(i.e. the fees which lenders charge to process, approve
and make the refinance student loan), since the other
fees are typically independent of the lender.
Secondly, when comparing refinance student loans
of different lenders you need to thoroughly investigate
and compare all loan features: maximum LTV, loan insurance
payments (if any), credit and cash reserve requirements,
qualifying ratios, etc. Pay special attention to the
presence of prepayment penalties and the availability
and terms of conversion options.
Thirdly, for each refinance student loan you are
comparing find out the lock-in period, during which
the interest rate and points quoted to you will be
guaranteed. Lock-ins of 30, 45 and 60 days are common.
Some lenders may offer a lock-in for only a short
period of time (15 days, for example). Usually, the
longer the lock-in period, the higher the price of
loan. The lock-in period should be long enough to
allow for settlement before lock-in expires.
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