LogFAQs > #885531857

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Topic	Financial savvy people: Is this a good idea?
IdiotMachine 08/27/17 10:28:28 AM #1:	Topic. Option [A]. Keep the current variable APR student loan, and pay it off sooner. Option [B]. Refinance for lower fixed APR, but pay more and longer. View Results This is in regards to student loans. I borrowed ~$65k at around 3.5% variable APR for 10 years. I paid around $600/mo at the beginning which was manageable. The APR has been fluctuating, and now, three years later, it's at around 8%, with about $50k left. I am paying around $800/mo now... this is too much (but still manageable; I have to be extra frugal), and this whole variable crap sucks. So I am looking to refinance. I found another loan company. They are willing to give me the ~$50k loan at fixed 5.125% over 15 years. This is just under $400/mo. So this means for the $50k that I have left: Option [A] - Assuming it stays stable, I pay $800/mo * 7 years * 12 months/year = $67,200 Option [B] - Refinance, I pay $400/mo * 15 years * 12 months/year = $72,000 Even though Option [B] means (I) I'll end up paying more in total and (II) it'll be for more than double the time left (7 years vs. 15 years), I feel like saving $400/mo will be much worth it. .....................what does CE think? <cite>IdiotMachine posted [p:885531857] in Financial ... [t:75713296]...</cite> <quote> Topic. Option [A]. Keep the current variable APR student loan, and pay it off sooner. Option [B]. Refinance for lower fixed APR, but pay more and longer. View Results This is in regards to student loans. I borrowed ~$65k at around 3.5% variable APR for 10 years. I paid around $600/mo at the beginning which was manageable. The APR has been fluctuating, and now, three years later, it's at around 8%, with about $50k left. I am paying around $800/mo now... this is too much (but still manageable; I have to be extra frugal), and this whole variable crap sucks. So I am looking to refinance. I found another loan company. They are willing to give me the ~$50k loan at fixed 5.125% over 15 years. This is just under $400/mo. So this means for the $50k that I have left: Option [A] - Assuming it stays stable, I pay $800/mo * 7 years * 12 months/year = $67,200 Option [B] - Refinance, I pay $400/mo * 15 years * 12 months/year = $72,000 Even though Option [B] means (I) I'll end up paying more in total and (II) it'll be for more than double the time left (7 years vs. 15 years), I feel like saving $400/mo will be much worth it. .....................what does CE think?</quote> ... Copied to Clipboard!
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