Refinancing currently?

[EMDOC17]

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Now getting close to a year out of residency I’ve settled into the job and getting things organized. I’m looking to refinance my loans (around 300k after knocking a decent amount out). I looked at the big names and it’s dismal. I’m looking at refinancing into a 10 year fixed which is where my current loans are financed at 6.8%. The absolute best was 5.8%. Sure saves but is there a better option that people have found? I looked at a couple local banks and no one will touch it unless I have equity in my home which since I bought it 6 months ago I do not.

 

[BoardingDoc]

If you live in NY, MA, CA, OR, CT or FL, there is a bank which is doing 3.35% 10 year fixed up to 300k. PM me for info if needed. They only lend local though so if you don't live there you're SOL.

 

[EMDOC17]

Thanks for the info but I am not in any of those states.

 

[swamprat]

Thanks for the info but I am not in any of those states.

I refinanced x 2 also a year out. DRB initially and now Earnest. Earnest was easy and I got a pretty good rate. If you go through them PM me Ill send you my link so we can both get paid!

 

[filhodeinferno]

Now getting close to a year out of residency I’ve settled into the job and getting things organized. I’m looking to refinance my loans (around 300k after knocking a decent amount out). I looked at the big names and it’s dismal. I’m looking at refinancing into a 10 year fixed which is where my current loans are financed at 6.8%. The absolute best was 5.8%. Sure saves but is there a better option that people have found? I looked at a couple local banks and no one will touch it unless I have equity in my home which since I bought it 6 months ago I do not.

That's odd. I'm a year out with 300k and just refinanced with Laurel Road at a 7 year fixed rate at 4.15%. Surprised it would be that much higher for a 10 year. This was about 2 months ago....maybe I just got in while the gettin was good?

 

[VA Hopeful Dr]

My wife refinanced with Sofi, went from 6.5 to 3.25 2 months ago.

 

[DissocativFugue]

I ended up using sofi for my 250K worth of loans and got 3.1% variable 3 years ago. It crept up to 3.7% by the end as the monthly libor rate went up. I also had a discover card with about 25k credit that offered 2% fee up front with 0% apr for 12 months. I used that credit 3 or 4 times in addition to my regular payments to knock out my loans quickly. Paid off my loans in 2.5 years.

 

[EMDOC17]

How are you all getting much better rates? I don’t think it’s my credit score since when I bought my hous it was 795 about 6 months ago. Granted I just looked online. Maybe I should give them a call. I haven’t seen anything better than 5.8%.

 

[intubesteak]

I ended up using sofi for my 250K worth of loans and got 3.1% variable 3 years ago. It crept up to 3.7% by the end as the monthly libor rate went up. I also had a discover card with about 25k credit that offered 2% fee up front with 0% apr for 12 months. I used that credit 3 or 4 times in addition to my regular payments to knock out my loans quickly. Paid off my loans in 2.5 years.

I thought you couldn't pay student loans with a credit card? Does that change when you refinance? Sorry for the dumb question but I don't want to miss out on a crap ton of miles...

 

[GonnaBeADoc2222]

Refinanced w DRB during residency for 4.5%, 5 year fixed.

Did it again w DRB after attending contract signed for 3.1%, 5 year fixed.

 

[swamprat]

DRB several years ago as a resident for me was 5% fixed 10 year. Now I'm 4.67% fixed at like a 13ish year - it dropped my required monthly payment (which for my 2nd refinance was my ultimate goal - bonus decrease in interest rate) but I am still paying what I paid to DRB (now overpaying by 25%) to pay it off in like 7-8 years or so. Unlike some of the other posters here (and maybe it is because of my high debt) I wanted the lowest monthly payment I could get within a reasonable interest rate so in case 1 month I decide to go on vacation or splurge I am able to and not tied down to a huge monthly payment. I probably am paying a little more by not having that low 5 year variable rate but peace of mind on a fixed rate + some freedom with my money is well worth it.

Regardless, WAY better than the government grad plus rates - what a joke.

 

[pkwraith]

I refinanced last month and was getting 4.2% from Sofi and 3.95% from Commobond (including autopay discounts) for ~130k for 7 years.

 

[bravotwozero]

Initially went with sofi, started around 3.6 variable which crept up to almost 4%. Refinanced a second time with citizens bank down to 2.8%. Also, if you're fresh out of residency and working an IC gig, some refinancing companies like meet earnest will give you a hard time, because they prefer w-2 pay stubs, or 2 years worth of solid prior returns if you are 1099, which they consider 'self-employed'...I applied to refinance in 2015 and the *****s were asking for my 2015 tax return....They also didn't like that there was too much 'variability' in my monthly income, due to number of shifts worked and RVUs...which was like a difference of 35k vs 32k monthly income - ridiculous.

 

[TooMuchResearch]

I got somewhere around 3.9% with sofi sometime in the last 6-9 months.

 

[The White Coat Investor]

Typical issues are debt to income ratio and credit score. If yours are both very good, you should be able to get the best rates.

You an also get lower rates by using a variable rate loan, getting a 5 year loan, or both.

Have you tried all these folks: Refinance Your Student Loans! | The White Coat Investor - Investing And Personal Finance for Doctors

 

[DissocativFugue]

I thought you couldn't pay student loans with a credit card? Does that change when you refinance? Sorry for the dumb question but I don't want to miss out on a crap ton of miles...

No it doesn’t work like that. They send offers in the mail with checks. You then write your loan servicer a check with the amount of credit you want to apply. Make sure you have a 0 balance on the card prior to doing this and then don’t use it ever until you paid off this promotional loan offer. You’re not getting any rewards from the use of this credit other than the interest rate arbitrage. It’s not a huge amount of money saved but it’s something.


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[bravotwozero]

Typical issues are debt to income ratio and credit score. If yours are both very good, you should be able to get the best rates.

My debt to income ratio was less than 1, and credit score was 800. I also had 100k (at the time) just sitting in my bank account, which they didn't even pay attention to. It still took a lot of nagging and haggling for the underwriting department eggheads to approve my loan...

 

[Pigg-O-Stat]

Just refinanced with ELFI at 3.09% 5 year fixed. Not too shabby.

 

[The White Coat Investor]

My debt to income ratio was less than 1, and credit score was 800. I also had 100k (at the time) just sitting in my bank account, which they didn't even pay attention to. It still took a lot of nagging and haggling for the underwriting department eggheads to approve my loan...

Why didn't you use that $100K to pay down the debt and then refinance the rest on a 5 year variable?