If you don't do your homework on your new loan, it could end up negatively impacting your financial life. Keep these five tips in mind to ensure you get the best possible deal.
1. Understand What Loans You Can Refinance
. Even private lenders can have stipulations concerning refinancing, frequently requiring a minimum balance and that you have no loans with an "in-school" status. Do some research about which lenders can work with the loans you have before attempting to refinance your loans.
2. Know Why And How Your Payment Is Changing
If you're struggling financially and cannot afford to make your monthly repayments, it may be worthwhile to pay more in the long run to secure lower payments now. Otherwise, it's in your best interest to make higher payments now with a shorter repayment term to save money over the life of the loan. The best deals will offer a lower interest rate on your loans to lower your payments as opposed to a longer repayment term. Not only will your payments shrink, you'll pay less money to the lender in the end.
3. Read The Fine Print
It's great to refinance your loan to get a lower monthly payment, but your savings may be lost to fees if you don't know the specifics of your new loan. Make sure you understand all the terms of your contract before you refinance
4. Check Your Credit Score
Private lenders may be willing to offer you a lower interest rate if you have a good credit score. Your credit score reflects characteristics that signify a responsible borrower who is likely to repay their debt, like a history of making timely payments.
5. Look For Incentives
Many private loan programs offer discounted interest rates for participating in special programs such as online billing an automatic debit.Article Source: http://EzineArticles.com/7149079
5 Tips for Refinancing Private Student Loans-5 Tips Student Loans