Loan


Extending The Term When You Refinance Student Loans

Refinancing your student loans means that a private lender is essentially buying your Federal student loans, paying them off, and creating a new loan with new, original terms.

The new terms of your refinanced loan will be based on your credit reports, credit score, and other requirements...
The only way I was able to do this was by extending the term of my loan from 10 years to 25 years. This lowered my monthly loan payments and gave me the flexibility I needed to make my career change (a change that came with a significant pay cut).

Example of extending your student loan term

Assume Amy has $45,000 in Federal student loan debt at 6 percent interest on a 10-year, standard repayment plan.

Amy decides to refinance her loans to private loans to get a lower interest rate...
The new private loan terms include, among other things, a new interest rate and, potentially, a new term (the length of time over which you have to repay your loan).

For example, you could take your Federal student loans that have a 10-year term and refinance them into one private loan scheduled to be paid off over 20 years.

If you have the option to extend the term of your student loan when you refinance, you should consider a number of factors before making your decision.

Pros of extending your student loan term

You’ll have lower monthly payments

By extending your loan term, you will be able to make lower monthly payments...
Amy decides to refinance her loans to private loans to get a lower interest rate, but this time she doesn’t extend the term.

Amy’s monthly payments are lower than they were originally, but they are still $218 more than they would be on the longer 25- year term...
While this may not seem like a big deal to you, it’s a point to consider if you’re thinking about your financial future.

Example of NOT extending your student loan term

Let’s look at Amy’s situation again: Amy has $45,000 in Federal student loan debt at a 6 percent interest rate on a 10-year, standard repayment plan...
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Ongoing Growth in Residential Construction Loans Points to Additional Expansion

Davidson said he finds construction loans “readily available now.”

To be sure, construction lending still has a long way to go in its recovery...
Russ Ruhnke, a senior vice president overseeing lending to home builders throughout the Midwest for Associated Banc-Corp., based in Green Bay, Wis., said the number of home-construction loans that the bank reviews for approval has increased by 40% to 50% in the past year.

“I do notice that we seem to have more competition…from the smaller, community banks,” Mr...
And some banks want guarantees from builder executives to personally repay loans if their companies can’t, a proposal at which many builders balk.

Credit “is available, but it’s definitely more conservative,” said Gary Tesch, president of Houston-based McGuyer Homebuilders Inc., a closely held builder aiming to construct 1,500 homes this year...
Those buyers have been hobbled in recent years by a slow ramp-up in job growth, tepid wage gains, tight mortgage-qualification standards and mounting student debt...
“Ongoing growth in residential construction loans points to additional expansion for single-family (construction) starts.”

That’s been the sticking point in recent years...
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Down Payment

However, loans, granted by the Department of Veterans (VA loans) do not require a down payment...


Please, do not expect your lender to offer you any home loans with no down payment ...
Also, until that time, home loans with no down payment were a common thing...
This practice was common in the 2000s and, sadly, resulted in many borrowers defaulting on their loans...
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Balance Transfer



Balance Transfer Calculator

If you want to pay out your loans fast, or are prepared to shift loans all the time, then you will most likely want to have 0 interest on balance transfers ...
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Payment Processing

It is also important that the company offers imprest loans in case you need some extra money for emergency needs.

  • Fees charged by the company must be compatible...
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    FHA Loan Down Payment

    There is just one exception: zero payment loans are still granted by the Department of Veterans...
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