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Tag: refinancing

  • Best Student Loan Refinancing Companies 2026: Save on Your Loans

    Advertiser Disclosure: This site may be compensated when you click on links to products featured here. This does not affect our editorial opinions or rankings. We only feature products we believe in.

    Refinancing your student loans means replacing one or more existing loans with a new private loan at a lower interest rate. If you have good credit and steady income, refinancing can save you thousands in interest over the life of your loans. This guide covers the best student loan refinancing companies of 2026.

    Should You Refinance Your Student Loans?

    Refinancing makes the most sense when:

    • You have private student loans with high interest rates
    • You have strong credit (typically 680 or higher)
    • You have stable income and a low debt-to-income ratio
    • You do not plan to use federal income-driven repayment or Public Service Loan Forgiveness (PSLF)

    Important warning: If you refinance federal student loans into a private loan, you lose access to federal protections — including income-driven repayment plans, deferment, forbearance, and forgiveness programs. Do not refinance federal loans unless you are sure you will not need those protections.

    Best Student Loan Refinancing Companies of 2026

    1. SoFi — Best Overall

    SoFi offers competitive rates, no fees, and a suite of member benefits including career coaching and financial planning. It refinances both private and federal loans (note: federal loans lose federal protections after refinancing). SoFi also offers unemployment protection — if you lose your job, you can temporarily pause payments.

    • Loan terms: 5, 7, 10, 15, 20 years
    • Min credit score: 650 (estimate — varies)
    • Fees: None (no origination, prepayment, or late fees)
    • Special perks: Unemployment protection, career coaching, financial planning

    2. Earnest — Best for Flexible Repayment

    Earnest stands out for its highly flexible repayment options. You can set your exact monthly payment and choose a loan term in one-month increments rather than being locked into preset terms. This lets you find the exact payment that fits your budget. It also offers a nine-month grace period after graduation — longer than most.

    • Loan terms: Custom (flexible, in 1-month increments)
    • Min credit score: 650 (estimate)
    • Fees: None
    • Special perks: Flexible payment scheduling, skip-a-payment option

    3. Laurel Road — Best for Healthcare Professionals

    Laurel Road offers special rates and benefits for doctors, nurses, and other healthcare professionals. It is part of KeyBank and offers competitive rates on large loan balances — which is helpful for medical school grads with six-figure debt.

    • Loan terms: 5, 7, 10, 15, 20 years
    • Min credit score: Check with lender
    • Special rates: Discounted rates for healthcare professionals and residents

    4. ELFI (Education Loan Finance) — Best Rates for Highly Qualified Borrowers

    ELFI consistently shows up as a top offer for borrowers with excellent credit and income. Its rates are competitive for both fixed and variable options. It is offered by Southeast Bank and has strong customer service reviews.

    • Loan terms: 5, 7, 10, 15, 20 years
    • Min credit score: 680 (estimate)
    • Min loan amount: $10,000

    5. College Ave — Best for Graduate Students

    College Ave offers a wide range of loan terms and a smooth online experience. It is a strong option for recent graduates and those with graduate or professional degrees who want fast approval and flexible terms.

    • Loan terms: 5, 8, 10, 15 years
    • Min credit score: Check with lender
    • Fees: None

    How to Refinance Student Loans: Step by Step

    1. Check your credit score. Most refinancing lenders want 650 or higher. The best rates go to borrowers with 720 or above.
    2. Gather your loan details. Know your current loan balances, interest rates, lenders, and monthly payments.
    3. Shop multiple lenders. Get prequalified quotes from at least three lenders. Prequalification uses a soft credit pull and does not affect your score.
    4. Compare offers. Look at the APR, loan term, monthly payment, and total interest paid over the life of the loan.
    5. Apply for the best offer. Submit a full application with documents (pay stubs, tax returns, loan statements).
    6. Keep paying old loans until your new lender confirms the refinance is complete.

    How Much Can You Save by Refinancing?

    The savings depend on your current rate, new rate, loan balance, and term. Here is a simple example:

    $50,000 at 7% over 10 years = $139,588 total paid. $50,000 at 5% over 10 years = $127,278 total paid. Savings: $12,310 in interest.

    Frequently Asked Questions

    Can you refinance federal student loans?

    Yes, but you lose federal protections when you do. You can no longer use income-driven repayment, PSLF, or federal forbearance. Think carefully before refinancing federal loans.

    How often can you refinance student loans?

    There is no limit. You can refinance as many times as you qualify. Some borrowers refinance multiple times as their credit score improves.

    Does refinancing hurt your credit score?

    Prequalification does not affect your score. A full application involves a hard inquiry, which may lower your score a few points temporarily.

    What credit score do I need to refinance student loans?

    Most lenders want at least 650. The best rates typically require 720 or higher. Some lenders allow a cosigner to help you qualify.

    Rates as of May 2026. Rates change frequently — check with each lender or card issuer for current terms.

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  • How to Refinance Your Mortgage in 2026: Step-by-Step Guide

    Advertiser Disclosure: This site may be compensated when you click on links to products featured here. This does not affect our editorial opinions or rankings. We only feature products we believe in.

    Refinancing your mortgage means replacing your current home loan with a new one — usually to get a lower interest rate, reduce your monthly payment, or pay off your loan faster. Millions of homeowners refinance every year. This guide explains exactly how it works and whether it makes sense for you in 2026.

    Why Refinance Your Mortgage?

    The most common reasons to refinance include:

    • Lower your interest rate: Even a 0.5% rate reduction can save thousands over the life of a loan
    • Lower your monthly payment: Extending the loan term reduces what you owe each month
    • Pay off your loan faster: Switching from a 30-year to a 15-year loan builds equity faster
    • Switch from adjustable to fixed rate: Lock in a stable rate and eliminate rate uncertainty
    • Cash-out refinance: Tap home equity for home improvements or debt consolidation

    When Does Refinancing Make Sense?

    A common rule of thumb: refinancing makes sense if you can lower your rate by at least 0.5% to 1%. But the better measure is the break-even point — how many months it takes for your monthly savings to cover the closing costs.

    Example: If refinancing costs $4,000 in closing costs and saves you $200 per month, your break-even is 20 months. If you plan to stay in the home for more than 20 months, refinancing likely makes sense.

    Step-by-Step Guide to Refinancing

    Step 1: Set Your Goal

    Know what you want to accomplish before you start. Are you trying to lower your monthly payment? Pay off the loan faster? Access equity? Your goal determines which type of refinance is right for you.

    Step 2: Check Your Credit Score

    A higher credit score means a lower interest rate. Check your credit report for errors before you apply. Most lenders want a score of at least 620 for conventional refinances. For the best rates, aim for 740 or higher.

    Step 3: Calculate Your Home Equity

    Most lenders require at least 20% equity to refinance without paying private mortgage insurance (PMI). If you have less than 20% equity, you may still be able to refinance, but you might pay PMI or face higher rates.

    To calculate your equity: subtract your current loan balance from your home’s current value. Divide by the current value to get your equity percentage.

    Step 4: Gather Your Documents

    Lenders will ask for:

    • Two years of tax returns and W-2s
    • Two months of pay stubs
    • Two months of bank statements
    • Current mortgage statement
    • Homeowners insurance declaration page
    • Government-issued ID

    Step 5: Compare Lenders

    Do not take the first offer you get. Compare rates and fees from at least three lenders — including your current lender, online lenders, and local banks or credit unions. Even a 0.25% rate difference matters over a 30-year loan.

    Look at the APR (annual percentage rate), not just the interest rate. The APR includes fees and gives you a more complete picture of the total cost.

    Step 6: Lock Your Rate

    Once you find a good offer, lock your rate. A rate lock guarantees your rate for a set period — usually 30 to 60 days — while your application is processed. Do not let your lock expire before closing.

    Step 7: Complete the Appraisal

    The lender will order a home appraisal to confirm your home’s current market value. An appraisal typically costs $300 to $500. If your home appraised value is lower than expected, it may affect your loan terms.

    Step 8: Close on the Loan

    At closing, you will sign documents and pay closing costs. Closing costs typically run 2% to 5% of the loan amount. You can sometimes roll closing costs into the loan balance (no-closing-cost refinance), though this increases your principal.

    After signing, you have a three-day rescission period where you can cancel the refinance without penalty.

    Types of Mortgage Refinances

    • Rate-and-term refinance: Changes your interest rate, loan term, or both. The most common type.
    • Cash-out refinance: Borrow more than your current balance and take the difference in cash. Uses your home equity.
    • Cash-in refinance: Pay a lump sum at closing to reduce your loan balance and improve your rate.
    • FHA streamline refinance: Simplified refinance for existing FHA loan holders. Limited documentation required.
    • VA IRRRL: Interest Rate Reduction Refinance Loan for existing VA loan holders. Streamlined process.

    Frequently Asked Questions

    How long does a mortgage refinance take?

    Most refinances take 30 to 45 days from application to closing. The timeline can be longer if there are appraisal delays or document issues.

    Does refinancing hurt your credit score?

    Applying for a refinance triggers a hard inquiry, which may lower your score by a few points temporarily. Shopping multiple lenders within a 14 to 45 day window counts as one inquiry for credit scoring purposes.

    How many times can you refinance your mortgage?

    There is no legal limit on how many times you can refinance. However, each refinance has costs, so you need to make sure the savings outweigh those costs each time.

    Can you refinance with bad credit?

    It is harder but not impossible. FHA refinances are available with lower credit score requirements. VA loans also have flexible guidelines. Expect to pay a higher rate if your credit is below 620.

    Rates as of May 2026. Rates change frequently — check with each lender or card issuer for current terms.

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