How to Shop for a Mortgage
You might feel like you’re ready to buy a home, but in addition to hunting for the perfect property, you’ll likely need to shop for the right mortgage loan before you commit to that purchase.
Knowing how to shop for a mortgage and compare offers can help you find the home loan that fits your situation and potentially save you thousands of dollars.
Here are some important things to consider when you’re shopping for a mortgage:
Consider mortgage typesCheck your credit scoreReview your credit reportExplore different financing optionsShop around for best ratesGet pre-approved
1. Consider mortgage types
A mortgage loan allows you to borrow the funds needed to buy a home. Understanding the features and requirements of each major mortgage program can help you figure out which one is right for your situation.
Most mortgages require a minimum down payment, usually around 3% to 5% of the sale price, and a minimum credit score.
If you’re looking for a great mortgage rate, Credible’s streamlined process can help. We make comparing multiple mortgage lenders easy. In just a few minutes, you can see prequalified rates all without leaving our platform.
Credible makes getting a mortgage easy
Instant streamlined pre-approval: It only takes 3 minutes to see if you qualify for an instant streamlined pre-approval letter, without affecting your credit.We keep your data private: Compare rates from multiple lenders without your data being sold or getting spammed.A modern approach to mortgages: Complete your mortgage online with bank integrations and automatic updates. Talk to a loan officer only if you want to.Find Rates Now
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Conventional loan
Conventional loans are mortgages offered by private banks, credit unions, and mortgage lenders but aren’t backed by government institutions. Instead, conventional loans are typically backed by Fannie Mae and Freddie Mac, two agencies that purchase mortgages and set borrower qualification requirements.
To get a conventional loan, you usually must pay at least 3% to 5% of the home’s purchase price as a down payment. You’ll also need a credit score of around 620 or higher, and the loan amount must follow conforming loan limits.
FHA loan
An FHA loan is a mortgage that’s funded by a bank, credit union, or other mortgage lender but insured by the Federal Housing Administration (FHA).
The government guarantee allows mortgage lenders more flexibility here, so you might qualify with a credit score of 580 if you can put down at least 3.5%. With a credit score in the 500 to 579 range, you’d need a down payment of 10% or more.
VA loan
VA loans are funded by private lending institutions and backed by the U.S. Department of Veterans Affairs. These mortgages are available to eligible members of the armed forces, veterans, and surviving spouses.
If you qualify, you could get approved for a mortgage with a 0% down payment and no mortgage insurance, though you’ll typically need to pay a funding fee. The VA doesn’t set minimum credit score requirements, but your lender may have its own limit.
USDA loan
USDA loans are guaranteed by the U.S. Department of Agriculture. These loans are designed for low-income borrowers who plan to purchase a home in a USDA-designated rural area.
You won’t have to make a down payment on a USDA loan, but you’ll be responsible for paying an upfront fee and an annual fee.
Keep Reading: What Is a Mortgage? Everything to Know About Home Loans
2. Check your credit score
When you apply for a mortgage, lenders typically pull your credit scores from all three major credit bureaus: TransUnion, Equifax, and Experian. Your credit scores help lenders predict how likely you are to repay a loan. As such, it factors into whether you’ll qualify for a mortgage and the loan terms you’ll receive.
All three of your credit scores may differ, so the lender will order the scores from lowest to highest and use the middle score to determine loan qualification. So, for example, if your scores are 620, 630, and 640, the lender may use 630 to make a lending decision.
A higher credit score — usually in the mid-700s and above — can help you get a good mortgage rate and potentially save you thousands of dollars in interest over the life of the loan. It may also help you qualify for more mortgage programs and a lower down payment requirement.
Tip: If your credit needs work, you may want to pause your mortgage search for a few months and focus on improving your credit score.
3. Review your credit report
Lenders will also review your credit reports, which are documents that capture the details of your credit history. Many consumers have a credit report with each of the three major credit bureaus.
Your credit report includes a list of credit accounts opened in your name, such as credit cards and student loans, plus the following:
Payment historyMonthly minimum paymentBalance informationWhether the account is in good standing
Lenders use the information in your credit report to:
Find your monthly financial obligations, which impacts your debt-to-income ratioLook for signs of loan delinquency, such as missed paymentsCheck for red flags, such as bankruptcy or foreclosure
Tip: Credit scoring companies, such as FICO and VantageScore, use the information in your credit reports to calculate your credit scores. Unfortunately, mistakes on credit reports are common — and these errors may affect your credit score and your ability to qualify for a mortgage.
So, before applying for a mortgage, check your credit reports and dispute any mistakes. You can pull your credit reports for free once a year at AnnualCreditReport.com.
4. Explore different financing options
A mortgage lender — such as a bank or credit union — is the company that funds your home loan. Each lender offers different loan programs and sets different borrower requirements. It’s important that you get quotes from several types of mortgage lenders to find one that offers the best loan program for you.
Banks
Banks are for-profit financial institutions that typically offer a number of different products such as mortgages, credit cards, checking and savings accounts, and more. Many large banks have branches nationwide or throughout a specific region where you can get in-person support, and they also might offer a wider selection of mortgage products.
One downside to banks is that they tend to charge slightly higher interest rates on home loans compared to credit unions, according to a side-by-side comparison by the National Credit Union Administration.
Credit unions
Credit unions are nonprofit organizations that offer banking services to their members. In addition to offering lower interest rates on mortgages and other financial products, credit unions have historically earned the highest customer satisfaction ratings.
However, you’ll need to join a credit union to get a mortgage. Some credit unions are open to anyone, but others may require you to work in a certain industry or live in a certain area.
Other mortgage lenders
You might also find a home loan with another type of lender. For instance, online lenders, such as Rocket Mortgage, offer an end-to-end digital process. You may be able to get pre-approved, upload loan documents, and close on the loan all online. By saving money on overhead costs, online lenders may also be able to offer lower rates or special discounts.
5. Shop around for best rates
Getting rate quotes from multiple lenders and comparing offers is one of the easiest ways to save money on your mortgage. That’s because the interest rate is one of the key components of the mortgage’s total cost, and rates can vary considerably with each lender. Despite this, about half of homebuyers skip shopping for the best rate.
According to the Consumer Financial Protection Bureau, borrowers could save $300 a year on average by shopping for more than one rate quote. You might save even more, depending on what you qualify for.
Example: Let’s say you get rate quotes from two different lenders on a $200,000 home loan, and you compare the monthly principal and interest payments on each. With a 3% interest rate, you save $44 per month compared to the same loan with a 3.5% rate. That might not sound like much, but it adds up to $528 in savings per year or $15,840 over a 30-year term.
Get Started: Find Your Mortgage Rate Today
6. Get pre-approved
A pre-approval is a letter from a mortgage lender that shows how much you’re qualified to borrow. This can help you set a homebuying budget and strengthen your purchase offer when you find a home you want to buy.
To start the process, you can contact a lender and ask for a pre-approval. They’ll pull your credit, look over your financial documents, and gauge how much money you have for a down payment. If you fit qualification requirements, the lender will hand you a mortgage pre-approval letter.
Getting pre-approved with Credible: With Credible, you can generate a streamlined pre-approval letter based on your unique situation. It only takes a couple of minutes to see loan details from all of our partner lenders. We also provide transparency into lender fees that other brokers typically don’t.
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Construction Loans: What They Are and How They Work
Building a home gives you an opportunity to have everything you could possibly want in a home — within your budget, of course. You don’t have to be rich to make it happen, you just have to qualify for a construction loan.
Construction loans are different from traditional mortgages. For one, a traditional mortgage is a long-term loan that helps you pay for an existing home, whereas a construction loan is a short-term loan that pays for the building of a new home and can convert into a traditional mortgage once the building process is completed.
Here’s what you need to know about the different types of construction loans and how they work:
What is a construction loan?What does a construction loan cover?How do construction loans work?Construction loan ratesConstruction loan typesHow to get a construction loanIs it hard to get a construction loan?How to choose a construction loan lender
What is a construction loan?
A construction loan allows you to borrow money to build or renovate a home.
When you buy a move-in ready home, the mortgage only needs to cover the purchase price and sometimes the closing costs.
When you build a home (or buy a home you want to overhaul), there are more steps involved: buying land, paying contractors, passing inspections. This more complicated process warrants a different type of loan.
Learn More: How Much It Costs to Renovate a House
What does a construction loan cover?
Construction loans pay for costs like:
LandArchitectural plansDesign feesBuilding permitsConstruction materialsContractor laborContingency reserves (in case your project goes over budget)Interest reserves (to cover your interest expenses during construction)Closing costsLong-term financing once construction is complete
How do construction loans work?
A construction loan is designed to pay for work in stages. This arrangement, called a “draw schedule,” reduces the risk to both the borrower and the lender that the builder will get a huge sum up front and fail to complete the work.
It also reduces the risk of shoddy work, as the lender will require inspections after each phase of building before releasing more funds. In fact, construction lenders require borrowers to work with experienced builders that do a high volume of work and that are financially sound, licensed, and insured.
While you won’t find construction loans at Credible, we can help you secure a competitive rate on your next conventional mortgage. In just a few minutes, you can compare loan options from all of our partner lenders — it’s easy and free.
Credible makes getting a mortgage easy
Instant streamlined pre-approval: It only takes 3 minutes to see if you qualify for an instant streamlined pre-approval letter, without affecting your credit.We keep your data private: Compare rates from multiple lenders without your data being sold or getting spammed.A modern approach to mortgages: Complete your mortgage online with bank integrations and automatic updates. Talk to a loan officer only if you want to.Find Rates Now
Trustpilot
Construction loan rates
Construction loan interest rates vary by lender, but can be similar to existing home loan rates or a few percentage points higher. Having a strong borrower profile (such as an excellent credit score and debt-to-income ratio) and working with a lender that specializes in construction loans will help you qualify for the best possible rate.
Construction loans can have either a fixed or variable interest rate during the construction phase. If you choose a construction loan with a variable interest rate, it’s important to understand the range within which your interest rate can fall and when you’ll be able to lock the rate on your permanent (post-construction) mortgage. That said, permanent loans can have adjustable rates, too.
If you don’t want that uncertainty, seek out a construction-to-permanent loan with a fixed rate so that the rate stays the same during the construction phase and permanent phase.
Learn More: How Much Does It Cost to Build a House in 2021?
Construction loan types
There are several types of construction loans. Learn which type might be right for you.
Renovation loan
A renovation loan is a type of construction loan that helps you buy an existing home and pay for any major structural and aesthetic changes. Examples of renovation loans include the FHA 203(k) loan and the Fannie Mae HomeStyle loan.
The key difference between a renovation loan and a regular purchase loan is that it gives you money to buy the home as well as to fix it up. This may mean borrowing more money than the home is currently worth.
Good to know: Real estate investors will often use a renovation loan to buy a fixer-upper. The idea is to bring the home’s value up through renovations, ideally to a higher value than the amount borrowed for instant equity.
Construction-to-permanent loan
Similar to a renovation loan, a construction-to-permanent loan combines what would normally be two loans. It gives you both money to build the home and the long-term financing to pay for the home over time.
Instead, you’ll have one loan with one closing, one appraisal, and one set of closing costs. Plus, you’ll only have to qualify once. If your financial situation changes while your home is being built, you’ll still be able to move in.
Good to know: You’ll make interest-only loan payments during construction (or borrow extra to cover this expense) and principal and interest payments after construction.
A construction-to-permanent loan will also allow you to finance the purchase of the land if you don’t already own it. Or, if you have an existing lot loan, you can use a construction-to-permanent loan to pay it off.
FHA construction loan
Borrowers with smaller down payments and lower credit scores may want to consider an FHA construction loan. These loans require a borrower contribution of just 3.5%. You can use your land equity toward your down payment if you’ve already purchased the land you’ll be constructing your home on.
The FHA’s construction loan has a single closing (meaning it’s a construction-to-permanent loan) and doesn’t require you to make any payments during the construction process. The interest rate may be fixed or variable during construction.
The FHA also allows you to be the homebuilder if you’re a licensed general contractor. The minimum credit score to qualify tends to be 620 or 640, depending on the lender.
Important: FHA loans come with additional fees, including upfront mortgage insurance and monthly mortgage insurance premiums.
VA construction loan
Qualifying military service members with VA loan eligibility may want to consider a VA construction loan to build a home. These loans allow up to 100% financing that covers both the land and home construction.
The VA guarantees two types of construction loans:
One-time close loan (construction-to-permanent)Two-time close loan (a construction loan followed by a separate permanent loan)
As its name suggests, a two-time close loan involves two separate closings and, in turn, requires you to pay two sets of closing fees.
When you get a VA construction loan, you won’t make any payments during the construction phase. Instead, your loan term will be shortened by the length of the construction period. If it takes a year to build your home, you’ll pay it off over 29 years instead of 30.
Good to know: You must use a registered VA builder. Lenders are allowed to charge a construction fee of up to 2% of the loan amount plus a 1% origination fee.
The VA requires the builder to cover a number of fees that borrowers might pay on other construction loans, such as loan interest during construction, inspection fees, and hazard insurance premiums. Like other VA loans, the veteran must pay a VA funding fee.
Owner-builder construction loan
If you’re a professional builder and want to construct your own home, you can get an owner-builder loan by proving that you’re experienced, licensed, insured, and have a financially sound business. You’ll also need to meet the standard personal financial requirements.
This type of loan may be attractive if you want the cost savings, control, and personal satisfaction of building your home yourself.
Tip: The VA doesn’t guarantee this type of construction loan, but the FHA does. You can also get an owner-builder construction loan from a private lender.
One-time close construction loan
A one-time close construction loan (also called a single-close construction loan or construction-to-permanent loan, as discussed above) is any construction loan where a single loan covers your entire project. For example, a VA construction loan can also be a one-time close construction loan.
Over the months it takes to build your home, your financial situation and interest rates may change. These changes can affect loan costs and your ability to qualify for a permanent loan. In addition, each loan requires its own down payment, underwriting, and closing costs.
Tip: A single-closing loan can save you a lot of time, money, and uncertainty. Without this type of loan, you might need three loans: one loan to finance the lot, a second loan to build the home, and a third loan to pay off the first two loans plus the home itself.
Learn More: Buying New Construction: Pros, Cons, Step-by-Step Guide
How to get a construction loan
Like with any home loan, you’ll need to meet a certain set of requirements to obtain a construction loan. Requirements vary by lender and by the type of construction loan you’re applying for.
Construction loan requirements
In general, here are the criteria you’ll want to meet to qualify for a construction loan:
Credit score: You’ll want to have a credit score of at least 620 to qualify for an FHA or VA construction loan. For a Fannie Mae single-close loan, the minimum credit score is 700.Down payment: For a conventional construction loan, you may need a down payment of as little as 5%. Sometimes you’ll need 10% to 20% of the sales price (land plus construction costs) or equity from your land value. An FHA construction loan requires a down payment of 3.5%, while a VA construction loan doesn’t have any down payment requirement.Debt-to-income ratio: Your DTI should be 43% or lower. A higher ratio may be allowed if you otherwise have strong finances.Repayment plan: Construction loans usually require no payments or interest-only payments during the construction phase. You’ll make fully amortizing principal and interest payments once construction is complete.
Steps to get a construction loan
Here’s how to get a construction loan:
Get pre-approved with a construction loan lender.Sign a contract with a builder. Make sure it has a loan contingency so you can exit the contract if you can’t finalize your construction loan.Submit your builder contract and the usual underwriting documents to your lender for approval. If you already own the land you will be building on, submit a copy of the deed, survey, and, if you bought the land recently, the settlement statement.Get a “subject to completion” appraisal for your proposed home.Get final approval and close on your construction loan.
After closing, construction can begin. Your lender will pay your builder through a series of disbursements and will inspect each phase of work.
Once construction is complete, your construction loan will be modified to a permanent loan or you’ll obtain permanent financing.
Is it hard to get a construction loan?
It shouldn’t be hard to qualify for a construction loan if you’re working with a reputable builder and you have a strong financial profile.
However, there are more steps in the qualification process, so it can be more involved and take longer than qualifying for a traditional mortgage.
How to choose a construction loan lender
The first thing you should look for when choosing a construction lender is expertise with construction loans. A lender that processes a high volume of construction loans and understands their intricacies will be easier to work with.
Chances are you have never built a home before, so you’ll want to choose a lender who can help you manage the construction process most effectively. A lender who has gone through the homebuilding experience numerous times will have a strong sense of how the process is supposed to work, what can go wrong and how to avoid problems. They can help you make sure your build gets done correctly.
The post Construction Loans: What They Are and How They Work appeared first on Credible.
13 Best Loans for Refinancing Student Loans Without a Cosigner
Refinancing your student loans with a cosigner could improve your approval chances as well as possibly get you a lower interest rate than you’d get on your own.
However, you don’t have to refinance with a cosigner if you meet the lender’s underwriting criteria on your own.
If you’re wondering how to refinance student loans without a cosigner, here’s what you should know:
Best lenders for refinancing without a cosignerOther student loan refinancing lenders to considerHow to refinance student loans without a cosignerPros of not using a cosigner when refinancingCons of not using a cosigner when refinancingHow cosigner release worksFrequently asked questions about refinancing without a cosigner
Best lenders for refinancing without a cosigner
If you’re thinking about refinancing your student loans without a cosigner, it’s important to compare as many lenders as possible first. This way, you can find the right loan for your situation.
Keep in mind: You’ll generally need good to excellent credit to get approved for refinancing — especially if you don’t have a cosigner. A good credit score is usually considered to be 700 or higher.
There are also some lenders that offer student loan refinancing for bad credit. But these loans typically come with higher interest rates compared to good credit loans.
Here are Credible’s partner lenders that don’t require a cosigner for refinancing:
LenderFixed rates from (APR)Variable rates from (APR)Loan terms (years)Loan amountsOffer Cosigner Release?
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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4.54%+N/A10, 15, 20$7,500 up to $200,000
(larger balances require special approval)Yes, after 36 monthsFixed APR:
4.54%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$7,500 up to $500,000Loan terms (years):
10, 15, 20Max. undergraduate loan balance:
$250,000 – $500,000Time to fund:
4 monthsRepayment options:
Immediate repayment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a resident of KentuckyCustomer service:
PhoneSoft credit check:
NoCosigner release:
After 36 monthsLoan servicer:
Kentucky Higher Education Student Loan CorporationMax. graduate loan balance:
$250,000 – $500,000Credible Review:
Advantage Education Loan reviewOffers Parent PLUS Refinancing :
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.15%+
1.87%+5, 7, 10, 15, 20$10,000 up to $250,000
(depending on degree)NoFixed APR:
2.15%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$10,000 to $400,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of TexasCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 – $149,000Max. Graduate Loan Balance:
$200,000 – $400,000Offers Parent PLUS Refinancing:
Does not disclose
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
2.44%+1
2.24%+15, 7, 10, 15, 20$10,000 to $500,000
(depending on degree and loan type)Yes, after 36 monthsFixed APR:
2.44%+1Variable APR:
2.24%+1Min. credit score:
Does not discloseLoan amount:
$10,000 to $750,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
Autopay, loyaltyEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $150,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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2.99%+2
2.94%+25, 7, 10, 12, 15, 20$5,000 to $300,000
(depending on degree type)Yes, after 24 monthsFixed APR:
2.99%+2Variable APR:
2.94%+2Min. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Loan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
Military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
All states except for MECustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
College Ave Servicing LLCMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $300,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
2.16%+
2.11%+5, 7, 10, 15, 20$5,000 to $500,000Yes, after 36 monthsFixed rate:
2.44%+1Variable rate:
2.24%+1Min. credit score:
680Loan amount:
$5,000 to $500,000Cosigner release:
YesLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Available in all states, except MS and NVCustomer service:
Email, phone, chatSoft credit check:
YesLoan servicer:
FirstMarkMax. undergraduate loan balance:
$500,000Max. graduate loan balance:
$500,000Offers Parent PLUS refinancing:
YesMin. income:
$65,000 (for 15- and 20-year products)
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
1.8%+5
1.8%+55, 10, 15, 20$1,000 to $250,000Yes, after 36 monthsFixed APR:
1.8%+5Variable APR:
1.8%+5Min. credit score:
700Loan amount:
$7,500 to $200,000Loan terms (years):
5, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and submit two personal referencesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Granite State Management & Resources (GSM&R)Max. Undergraduate Loan Balance:
$150,000 to $249,000Max. Graduate Loan Balance:
$150,000 to $199,000Offers Parent PLUS Refinancing :
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
2.47%+3
2.39%+35, 7, 10, 12, 15, 20Minimum of $15,000NoFixed APR:
2.47%+3Variable APR:
2.39%+3Min. credit score:
680Loan amount:
No maximumLoan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
ForbearanceFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved schoolCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
MohelaMax. Undergraduate Loan Balance:
No maximumMax. Graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
3.47%+4
2.44%+45, 10, 15, 20$5,000 to $250,000Yes, after 48 months of on-time paymentsFixed APR:
3.47%+4Variable APR:
2.44%+4Min. credit score:
670Loan amount:
$5,000 to $250,000Loan terms (years):
5, 10, 15, 20Repayment options:
Academic deferment, military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must be U.S. citizen or permanent residentCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
YesMax undergraduate loan balance:
$250,000Max graduate loan balance:
$250,000Offers Parent PLUS refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
2.24%+7N/A5, 7, 10, 12, 15, 20Up to $300,000Yes, after 24 monthsFixed APR:
2.24%+7Variable APR:
N/AMin. credit score:
670Loan amount:
Up to $300,000Loan terms (years):
5, 7, 10, 15, 20Time to fund:
Usually one business dayRepayment options:
Academic deferral, military deferral, forbearance, death/disability dischargeFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsMax. undergraduate loan balance:
$300,000Max. graduate balance:
$300,000Offers Parent PLUS loans:
YesMin. income:
None
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
3.05%+
3.05%+7, 10, 15$10,000 up to the total amount of qualified education debt NoFixed APR:
3.05%+Variable APR:
3.05%+Min. credit score:
670Loan amount:
$10,000 up to the total amountLoan terms (years):
7, 10, 15Repayment options:
Military deferment, loans discharged upon death or disabilityFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
AESMax. Undergraduate Loan Balance:
No maximumMax. Gradaute Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
2.89%+N/A5, 8, 12, 15$7,500 to $300,000Yes, after 12 monthsFixed APR:
2.89%+Variable APR:
N/AMin. credit score:
670Loan amount:
$7,500 to $300,000Loan terms (years):
5, 8, 12, 15Repayment options:
Does not discloseFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen and have and at least $7,500 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 12 monthsLoan servicer:
PenFedMax. Undergraduate Loan Balance:
$300,000Max. Graduate Loan Balance:
$300,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
3.29%+N/A5, 10, 15$7,500 up to $250,000
(depending on highest degree earned) NoFixed APR:
3.29%+Variable APR:
N/AMin. credit score:
680Loan amount:
$7,500 to $250,000Loan terms (years):
5, 10, 15Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000Customer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Rhode Island Student Loan AuthorityMax. Undergraduate Loan Balance:
$150,000 – $249,000Max. Graduate Loan Balance:
$200,000 – $249,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>
2.49%+6
2.25%+65, 7, 10, 15, 20$5,000 up to the full balance of your qualified education loans NoFixed APR:
2.49%+6Variable APR:
2.25%+6Min. credit score:
Does not discloseLoan amount:
$5,000 up to the full balanceLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, military defermentFees:
NoneDiscounts:
Autopay, loyaltyEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
NoMax undergraduate loan balance:
No maximumMax graduate loan balance:
No maximumOffers Parent PLUS refinancing:
YesAll APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures | 6SoFi Disclosures
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Trustpilot
dvantage
Best for: Parents who want to transfer PLUS Loans to their children
With Advantage, you can refinance loan amounts from $7,500 to $500,000 (depending on your degree and loan type) with repayment terms from 10 to 20 years.
Advantage is also one of the few lenders that allow parents to refinance Parent PLUS Loans into their child’s name.
3.0
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
Advantage Education Loan Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
4.54%+
Variable APR
Lowest variable rate available from this lenderN/A
Min. credit score
Minimum credit score needed to qualifyDoes not disclose
Loan amount
Range needed to refinance with this lender$7,500 up to $500,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
4.54%+Variable APR: N/AMin. credit score: Does not discloseLoan amount: $7,500 up to $500,000Loan terms (years): 10, 15, 20Max. undergraduate loan balance: $250,000 – $500,000Time to fund: 4 monthsRepayment options: Immediate repayment, forbearance, loans discharged upon death or disabilityFees: NoneDiscounts: AutopayEligibility: Must be a resident of KentuckyCustomer service: PhoneSoft credit check: NoCosigner release: After 36 monthsLoan servicer: Kentucky Higher Education Student Loan CorporationMax. graduate loan balance: $250,000 – $500,000Credible Review: Advantage Education Loan reviewOffers Parent PLUS Refinancing : Yes
Pros
0.25% autopay discountCan transfer Parent PLUS Loans to studentGraduated repayment plan offered
Cons
$18,000 minimum income requirementDoesn’t offer variable ratesLong cosigner release period (36 months)
Learn More: Best Companies to Refinance Parent Plus Loans
Brazos
Best for: Borrowers who live in Texas
If you’re a Texas resident, Brazos could be a good option for refinancing. With Brazos, you can refinance $10,000 to $400,000 (depending on your degree) with terms from five to 20 years.
4.4
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
Brazos Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
2.15%+
Variable APR
Lowest variable rate available from this lenderN/A
Min. credit score
Minimum credit score needed to qualifyDoes not disclose
Loan amount
Range needed to refinance with this lender$10,000 to $400,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.15%+Variable APR: N/AMin. credit score: Does not discloseLoan amount: $10,000 to $400,000Loan terms (years): 5, 7, 10, 15, 20Repayment options: Military deferment, forbearanceFees: Late feeDiscounts: AutopayEligibility: Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of TexasCustomer service: Email, phoneSoft credit check: Does not discloseCosigner release: NoLoan servicer: Firstmark ServicesMax. Undergraduate Loan Balance: $100,000 – $149,000Max. Graduate Loan Balance: $200,000 – $400,000Offers Parent PLUS Refinancing: Does not disclose
Pros
0.25% autopay discountVariety of repayment terms offeredForbearance options available for economic hardship, active-duty military service, or natural disaster
Cons
Only available in TexasCould be hard to qualify if you don’t have good credit$60,000 minimum income requirement without a cosigner
Citizens
Best for: Borrowers who already have an account with Citizens
With Citizens, you can refinance loan amounts from $10,000 to $750,000 (depending on your degree and loan type) with terms from five to 20 years.
Additionally, if you already have an account with Citizens, you could get a 0.25% rate discount — plus another 0.25% off your rate if you sign up for autopay.
4.7
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
Citizens Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
2.44%+1
Variable APR
Lowest variable rate available from this lender
2.24%+1
Min. credit score
Minimum credit score needed to qualifyDoes not disclose
Loan amount
Range needed to refinance with this lender$10,000 to $750,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.44%+1Variable APR:
2.24%+1Min. credit score: Does not discloseLoan amount: $10,000 to $750,000Loan terms (years): 5, 7, 10, 15, 20Repayment options: Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees: Late feeDiscounts: Autopay, loyaltyEligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service: Email, phone, chatSoft credit check: YesCosigner release: After 24 to 36 monthsLoan servicer: Firstmark ServicesMax. Undergraduate Loan Balance: $100,000 to $149,000Max. Graduate Loan Balance: Less than $150,000Offers Parent PLUS Refinancing: Yes
Pros
0.25% autopay discount0.25% loyalty discountDegree not required
Cons
Doesn’t disclose minimum credit score or income requirementsLong cosigner release period (36 months)Cosigner release not available on the Education Refinance Loan for Parents
Check Out: Can You Refinance a Student Loan to a 30-Year Term?
College Ave
Best for: Variety of repayment terms
College Ave offers refinancing on loan amounts from $5,000 to $300,000 (depending on degree type). Additionally, borrowers can choose between 16 repayment terms ranging from five to 20 years, making it easier to fit your payments into your budget.
4.4
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
College Ave Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
2.99%+2
Variable APR
Lowest variable rate available from this lender
2.94%+2
Min. credit score
Minimum credit score needed to qualify Does not disclose
Loan amount
Range needed to refinance with this lender$5,000 to $300,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.99%+2Variable APR:
2.94%+2Min. credit score: Does not discloseLoan amount: $5,000 to $300,000Loan terms (years): 5, 7, 10, 12, 15, 20Repayment options: Military deferment, forbearance, loans discharged upon death or disabilityFees: Late feeDiscounts: AutopayEligibility: All states except for MECustomer service: Email, phone, chatSoft credit check: YesCosigner release: After 24 to 36 monthsLoan servicer: College Ave Servicing LLCMax. Undergraduate Loan Balance: $100,000 to $149,000Max. Graduate Loan Balance: Less than $300,000Offers Parent PLUS Refinancing: Yes
Pros
0.25% autopay discountVariety of repayment terms availableCosigner release offered after 24 months of consecutive, on-time payments
Cons
Doesn’t disclose minimum credit score or income requirementsUndergraduate or graduate degree requiredParents can’t transfer Parent PLUS Loans to student
CommonBond
Best for: Borrowers who plan to pay off their loan quickly
With CommonBond, you can refinance loan amounts from $5,000 to $500,000 with repayment terms from five to 20 years.
CommonBond also offers a unique hybrid loan option that starts with a fixed rate for the first half of the repayment term before switching to a variable rate — this could help you save money if you plan to pay off your loan quickly.
4.5
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
CommonBond Student Loan Refinancing
Fixed rate
Lowest fixed rate available from this lender
2.44%+1
Min. credit score
Minimum credit score needed to qualify680
Loan amount
Range needed to refinance with this lender$5,000 to $500,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed rate:
2.44%+1Variable rate:
2.24%+1Min. credit score: 680Loan amount: $5,000 to $500,000Cosigner release: YesLoan terms (years): 5, 7, 10, 15, 20Repayment options: Academic deferment, forbearance, loans discharged upon death or disabilityFees: Late feeDiscounts: AutopayEligibility: Available in all states, except MS and NVCustomer service: Email, phone, chatSoft credit check: YesLoan servicer: FirstMarkMax. undergraduate loan balance: $500,000Max. graduate loan balance: $500,000Offers Parent PLUS refinancing: YesMin. income: $65,000 (for 15- and 20-year products)
Pros
Offers a hybrid loan option that starts with a fixed rate for the first half of the repayment term before switching to a variable rate0.25% autopay discountUp to 24 months of forbearance available over the life of the loan
Cons
Must be have graduated from an eligible Title IV accredited university or graduate program within CommonBond’s network$65,000 minimum income requirement for 15- and 20-year productsNot available in Mississippi or Nevada
Learn More: Debt-to-Income Ratio for Refinancing Student Loans
EDvestinU
Best for: Borrowers who didn’t graduate
EDvestinU offers refinancing on loan amounts from $7,500 to $200,000 with terms from five to 20 years. Unlike many lenders, EDvestinU doesn’t require borrowers to have graduated to be eligible.
3.8
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
EDvestinU Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
1.8%+5
Variable APR
Lowest variable rate available from this lender
1.8%+5
Min. credit score
Minimum credit score needed to qualify700
Loan amount
Range needed to refinance with this lender$7,500 to $200,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Does refinancing make sense for you? Compare offers from top refinancing lenders to determine your actual savings.View DetailsFixed APR:
1.8%+5Variable APR:
1.8%+5Min. credit score: 700Loan amount: $7,500 to $200,000Loan terms (years): 5, 10, 15, 20Repayment options: Immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees: NoneDiscounts: AutopayEligibility: Must be a U.S. citizen or permanent resident and submit two personal referencesCustomer service: Email, phoneSoft credit check: YesCosigner release: After 36 monthsLoan servicer: Granite State Management & Resources (GSM&R)Max. Undergraduate Loan Balance: $150,000 to $249,000Max. Graduate Loan Balance: $150,000 to $199,000Offers Parent PLUS Refinancing : Yes
Pros
0.25% autopay discountDegree not requiredNo application, origination, or disbursement fees
Cons
Could be hard to qualify if you don’t have good creditLong cosigner release period (36 months)$30,000 to $50,000 minimum income requirement (depending on loan amount)
ELFI
Best for: Borrowers with high loan balances
Education Loan Finance (ELFI) doesn’t have a maximum loan amount — you just need at least $15,000 in student loans to refinance. You can choose between repayment terms from five to 20 years — though keep in mind that 15- and 20-year terms aren’t available for parent borrowers.
4.4
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
Education Loan Finance Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
2.47%+3
Variable APR
Lowest variable rate available from this lender
2.39%+3
Min. credit score
Minimum credit score needed to qualify680
Loan amount
Range needed to refinance with this lenderNo maximum
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.47%+3Variable APR:
2.39%+3Min. credit score: 680Loan amount: No maximumLoan terms (years): 5, 7, 10, 12, 15, 20Repayment options: ForbearanceFees: NoneDiscounts: NoneEligibility: Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved schoolCustomer service: Email, phoneSoft credit check: YesCosigner release: NoLoan servicer: MohelaMax. Undergraduate Loan Balance: No maximumMax. Graduate Loan Balance: No maximumOffers Parent PLUS Refinancing: Yes
Pros
No maximum loan amountVariable rates capped at 9.95% APRUp to 12 months of forbearance available to borrowers facing financial hardship
Cons
Must have at least $15,000 to refinanceCosigner release not offered$35,000 minimum income requirement
Check Out: How to Pay Off $30,000 in Student Loans
INvestEd
Best for: Borrowers who might need access to forbearance
With INvestEd, you can refinance $5,000 to $250,000 with terms from five to 20 years. Additionally, borrowers can access up to 24 months of forbearance over the life of the loan, which could be helpful if you experience financial hardship or unexpected circumstances.
3.9
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
INvestEd Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
3.47%+4
Variable APR
Lowest variable rate available from this lender
2.44%+4
Min. credit score
Minimum credit score needed to qualify670
Loan amount
Range needed to refinance with this lender$5,000 to $250,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
3.47%+4Variable APR:
2.44%+4Min. credit score: 670Loan amount: $5,000 to $250,000Loan terms (years): 5, 10, 15, 20Repayment options: Academic deferment, military deferment, forbearanceFees: Late feeDiscounts: AutopayEligibility: Must be U.S. citizen or permanent residentCustomer service: Email, phone, chatSoft credit check: YesCosigner release: YesMax undergraduate loan balance: $250,000Max graduate loan balance: $250,000Offers Parent PLUS refinancing: Yes
Pros
0.25% autopay discountUp to 24 months of forbearance available over the life of the loanDegree not required
Cons
Charges late and returned payment feesLong cosigner release period (48 months)$36,000 minimum income requirement
ISL Education Lending
Best for: Borrowers who want to refinance while they’re in school
ISL Education Lending offers refinancing on loan amounts from $5,000 to $300,000 ($10,000 minimum for California residents) with terms from five to 20 years. Unlike many other lenders, ISL Education Lending doesn’t require you to have graduated — in fact, you can refinance while you’re still in school.
Keep in mind that if you’re still in school, you can refinance a maximum of $200,000.
4.2
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
ISL Education Lending Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
2.24%+7
Min. credit score
Minimum credit score needed to qualify670
Loan amount
Range needed to refinance with this lenderUp to $300,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.24%+7Variable APR: N/AMin. credit score: 670Loan amount: Up to $300,000Loan terms (years): 5, 7, 10, 15, 20Time to fund: Usually one business dayRepayment options: Academic deferral, military deferral, forbearance, death/disability dischargeFees: NoneDiscounts: AutopayEligibility: Available in all 50 statesCustomer service: Email, phoneSoft credit check: YesCosigner release: After 24 monthsMax. undergraduate loan balance: $300,000Max. graduate balance: $300,000Offers Parent PLUS loans: YesMin. income: None
Pros
Degree not requiredGraduated repayment plan offeredNo minimum income requirement
Cons
Variable interest rates not offeredCould be hard to qualify if you have poor creditLower maximum loan amount if you want to refinance while still in school
Learn More: When to Refinance Student Loans
MEFA
Best for: Borrowers who attended a public or nonprofit university
With the Massachusetts Educational Financing Authority (MEFA), you can refinance $10,000 up to the total amount of your qualified education debt. Repayment terms range from seven to 15 years.
Keep in mind that you must have attended a public or nonprofit university to refinance with MEFA — for-profit schools aren’t eligible.
4.0
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
MEFA Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
3.05%+
Variable APR
Lowest variable rate available from this lender
3.05%+
Min. credit score
Minimum credit score needed to qualify670
Loan amount
Range needed to refinance with this lender$10,000 up to the total amount
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
3.05%+Variable APR:
3.05%+Min. credit score: 670Loan amount: $10,000 up to the total amountLoan terms (years): 7, 10, 15Repayment options: Military deferment, loans discharged upon death or disabilityFees: NoneDiscounts: NoneEligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service: Email, phoneSoft credit check: YesCosigner release: NoLoan servicer: AESMax. Undergraduate Loan Balance: No maximumMax. Gradaute Loan Balance: No maximumOffers Parent PLUS Refinancing: Yes
Pros
Might be able to refinance up to the total amount of your qualified education debtDegree not requiredNo fees
Cons
Not available for borrowers who attended for-profit universitiesNo discounts offeredLimited repayment terms (7, 10, or 15 years)
PenFed
Best for: Spouses who want to refinance their loans together
With PenFed, you can refinance $7,500 to $300,000 with terms from five to 15 years. PenFed is also the only major lender that allows spouses to refinance their loans together.
4.5
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
PenFed Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
2.89%+
Variable APR
Lowest variable rate available from this lenderN/A
Min. credit score
Minimum credit score needed to qualify670
Loan amount
Range needed to refinance with this lender$7,500 to $300,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.89%+Variable APR: N/AMin. credit score: 670Loan amount: $7,500 to $300,000Loan terms (years): 5, 8, 12, 15Repayment options: Does not discloseFees: NoneDiscounts: NoneEligibility: Must be a U.S. citizen and have and at least $7,500 in student loansCustomer service: Email, phone, chatSoft credit check: YesCosigner release: After 12 monthsLoan servicer: PenFedMax. Undergraduate Loan Balance: $300,000Max. Graduate Loan Balance: $300,000Offers Parent PLUS Refinancing: Yes
Pros
Spouses can refinance their student loans togetherCosigner release offered after 12 months of consecutive, on-time paymentsNo fees
Cons
No discounts offered$42,000 to $50,000 minimum income requirement (depending on loan amount)Must have bachelor’s degree or higher
Learn More: 4 Credit Unions for Student Loan Refinancing
RISLA
Best for: Borrowers looking for income-based repayment options
Most private student loans don’t offer the repayment options that federal student loans do. However, the Rhode Island Student Loan Authority (RISLA) offers an income-based repayment (IBR) plan to borrowers facing financial hardship. Like the federal IBR plan, your payments will be 15% of your discretionary income, and RISLA will forgive any remaining balance after 25 years.
With RISLA, you can refinance loan amounts from $7,500 to $250,000 (depending on the highest degree you’ve earned) with terms from five to 15 years.
3.7
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
RISLA Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
3.29%+
Variable APR
Lowest variable rate available from this lenderN/A
Min. credit score
Minimum credit score needed to qualify680
Loan amount
Range needed to refinance with this lender$7,500 to $250,000
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
3.29%+Variable APR: N/AMin. credit score: 680Loan amount: $7,500 to $250,000Loan terms (years): 5, 10, 15Repayment options: Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees: NoneDiscounts: AutopayEligibility: Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000Customer service: Email, phoneSoft credit check: Does not discloseCosigner release: NoLoan servicer: Rhode Island Student Loan AuthorityMax. Undergraduate Loan Balance: $150,000 – $249,000Max. Graduate Loan Balance: $200,000 – $249,000Offers Parent PLUS Refinancing: Yes
Pros
Offers an income-based repayment plan to borrowers facing financial hardshipCan defer payments for up to 36 months if you return to graduate schoolDegree not required
Cons
Variable rates not offered$40,000 minimum income requirementCosigner release not offered
SoFi
Best for: Borrower perks
With SoFi, you can refinance loan amounts starting at $5,000 up to the full balance of your qualified education loans with terms from five to 20 years.
Additionally, SoFi borrowers have access to several perks, such as unemployment protection, career coaching, and investing advice.
4.5
Credible rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates and terms
Fees and Discounts
Customer Experience
SoFi Student Loan Refinancing
Fixed APR
Lowest fixed rate available from this lender
2.49%+6
Variable APR
Lowest variable rate available from this lender
2.25%+6
Min. credit score
Minimum credit score needed to qualifyDoes not disclose
Loan amount
Range needed to refinance with this lender$5,000 up to the full balance
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates>Checking rates won’t affect your credit scoreView DetailsFixed APR:
2.49%+6Variable APR:
2.25%+6Min. credit score: Does not discloseLoan amount: $5,000 up to the full balanceLoan terms (years): 5, 7, 10, 15, 20Repayment options: Academic deferment, military defermentFees: NoneDiscounts: Autopay, loyaltyEligibility: Available in all 50 statesCustomer service: Email, phone, chatSoft credit check: YesCosigner release: NoMax undergraduate loan balance: No maximumMax graduate loan balance: No maximumOffers Parent PLUS refinancing: Yes
Pros
0.25% autopay discountMight be able to refinance the full balance of your qualified education loansBorrower perks, such as unemployment protection and investing advice
Cons
Doesn’t disclose minimum credit requirementsDoesn’t offer cosigner releaseMust have earned an associate degree or higher from a Title IV school
Check Out: How to Get Student Loan Repayment Help
Methodology
To find the “best companies,” Credible looked at loan and lender data points from 12 categories to give you a well-rounded perspective on each of our partner refinancing lenders.
Here’s what we considered:
Interest ratesRepayment termsRepayment optionsFeesDiscountsCustomer service availabilityMaximum loan balancesWillingness to refinance parent loansEligibility criteriaCosigner release optionsWhether the minimum credit score is available publiclyWhether consumers could request rates with a soft credit check
Our hope is that this will be a win-win situation for you and us — we only want to get paid if you find a loan that works for you, not by selling your data. This means Credible will only get paid by the lender if you finish the refinancing process and a loan is disbursed. Additionally, Credible charges you no fees of any kind to compare your refinancing options.
Other student loan refinancing lenders to consider
Here are more student loan refinancing companies we evaluated. Keep in mind that these lenders are not offered through Credible, so you won’t be able to easily compare your rates with them on the Credible platform like you can our partner lenders.
LenderLoan terms (years)Max loan balance
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>10, 20Undergrad: $249,000
Grad: $199,000Min. credit score:
Does not discloseLoan amount:
Up to $250,000Loan terms (years):
10, 20Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoMax. undergraduate Loan Balance:
$150,000 to $249,000Max. graduate Loan Balance:
$150,000 to $199,000Offers Parent PLUS Refinancing:
No
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>5, 7, 10, 15Undergrad: $500,000
Grad: $500,000Rates:
fixed, variableMin. credit score:
Does not disclose Loan amount:
$60,000 to $350,000Cosigner release:
NoLoan terms (years):
5, 7, 10, 15, 20Fees:
NoneDiscounts:
Autopay, loyaltyEligibility:
Available in CA, CT, FL, MA, NY, OR, WYCustomer service:
Email, phoneSoft credit check:
YesMax. undergraduate loan balance:
$500,000Max. graduate loan balance:
$500,000
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>10, 15, 20Undergrad: $249,000
Grad: $249,000Rates:
Fixed, variableMin. credit score:
Does not discloseLoan amount:
$10,000 to $250,000Cosigner release:
After 24 to 36 monthsLoan terms (years):
10, 15, 20Repayment options:
Military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesLoan servicer:
Student Loan Finance CorporationMax. undergraduate Loan Balance:
$150,000 to $249,000Max. graduate Loan Balance:
$200,000 to $249,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>5, 7, 10, 15Undergrad: None
Grad: NoneMin. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Cosigner release:
Does not discloseLoan terms (years):
5, 7, 10, 15Repayment options:
Immediate repayment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
YesMax. undergraduate Loan Balance:
No maximumMax. graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>5, 7, 10, 15, 20Does not discloseRates:
Fixed, variableMin. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Cosigner release:
YesLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Does not discloseFees:
NoneDiscounts:
AutopayEligibility:
Does not discloseCustomer service:
Email, phoneSoft credit check:
YesLoan servicer:
LendKey Technologies Inc.Max. undergraduate Loan Balance:
Does not discloseMax. graduate Loan Balance:
Does not discloseOffers Parent PLUS Refinancing:
No
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>5, 10, 15Undergrad: $99,000
Grad: $150,000Min. credit score:
Does not discloseLoan amount:
Less than $150,000Loan terms (years):
5, 10, 15Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Does not discloseDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
YesMax. Undergraduate Loan Balance:
Less than $99,000Max. graduate Loan Balance:
Less than $150,000Offers Parent PLUS Refinancing:
Yes
Credible Rating>
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details>Does not discloseUndergrad: None
Grad: NoneMin. credit score:
Does not discloseLoan amount:
No maximumLoan terms:
Does not discloseRepayment options:
Academic deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
YesMax. undergraduate Loan Balance:
No maximumMax. graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
YesThe lenders in this table aren’t our partners. But you can use Credible to compare rates in 2 minutes from other lenders who offer student loan refinancing.
Compare Now
How to refinance student loans without a cosigner
If you’re ready to refinance your student loans without a cosigner, follow these four steps:
Check your credit. When you apply for refinancing, the lender will evaluate your credit to determine your creditworthiness — so it’s a good idea to check your credit beforehand to see where you stand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your credit score.Compare lenders and pick a loan option. Be sure to shop around and compare as many student loan refinance companies as you can to find the right loan for you. Consider not only interest rates but also repayment terms, any fees charged by the lender, and eligibility requirements. After you’ve done your research, pick the loan option that works best for your needs.Complete the application. Once you’ve chosen a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs. Also be prepared to provide information regarding the loans you want to refinance.Manage your payments. If you’re approved, continue making payments on your old loans while the refinance is processed. Afterward, you could consider signing up for autopay so you won’t miss any payments in the future — many lenders offer a rate discount to borrowers who opt for automatic payments.Keep in mind: While you can refinance both federal and private loans, refinancing federal student loans will cost you access to federal benefits and protections — such as income-driven repayment plans and student loan forgiveness programs.
Depending on your credit, you might qualify for a lower interest rate through refinancing. This means you could save money on interest and potentially pay off your loan faster. You can use our calculator below to see how much you can save by refinancing your student loans.
Step 1. Enter your loan balance
Loan balanceEnter the remaining amount of the loans you’d like to refinance
Step 2. Enter current loan information
Interest rateEnter the average annual interest rate of the loans you’d like to refinanceMonthly paymentEnter the monthly amount you currently pay on your loans (or enter remaining term)Remaining termEnter the amount of time left to repay your loan (or enter monthly payment)years
Step 3. Enter your new loan information to start calculating your savings
Interest rateEnter an estimated new interest rate.Monthly paymentEnter the monthly amount to pay on your new loan (or enter new loan term)New loan termEnter the amount of time you have to repay your loan (or enter monthly payment)yearsLifetime SavingsIncreased Lifetime Cost
New Monthly Payment>Monthly SavingsIncreased Monthly Cost
If you refinance your student loan at>
interest rate, you>can savewill pay an additional
monthly and pay off your loan by>.
The total cost of the new loan will be>.
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Check Personalized Rates
Checking rates won’t affect your credit score.
Check Out: Student Loan Repayment Calculator: Estimate Your Payoff Date
Pros of not using a cosigner when refinancing
Refinancing without a cosigner could be the right option for some borrowers, but it isn’t right for everyone. Here are a few potential benefits to keep in mind:
No need to find one: In some cases, borrowers might not know anyone with good enough credit to act as a cosigner. If you refinance without a cosigner, you won’t need to worry about this.No risk to your relationships: A cosigner shares responsibility for the loan — which means they’re on the hook if you can’t make your payments. If this happens, it could severely strain your relationship with your cosigner. By refinancing without a cosigner, you won’t risk potentially alienating any friends or family members.Only you are responsible for the loan: Without a cosigner, you’re the only one responsible for your refinanced loan. This means you can focus on repaying your loan without worrying about negatively affecting a cosigner along the way — which might feel financially empowering for some.
Learn More: When Student Loan Refi Is a Good Idea and When to Reconsider
Cons of not using a cosigner when refinancing
Could be hard to qualify on your own: If you have less-than-perfect credit, you might have a hard time getting approved for refinancing without a cosigner.Might not get the best rates: Even if you don’t need a cosigner to get approved, having one could get you a lower rate than you’d get on your own. Unless you have excellent credit, you might not qualify for the lowest rates advertised by lenders without a cosigner.Less motivation to stay on top of your payments: Some borrowers might need the extra motivation of having a cosigner to make on-time payments.
Check Out: Should I Pay Off My Student Loans or Invest in Stocks?
How cosigner release works
Some lenders offer a cosigner release option — so if you already have a cosigner, you might be able to remove them from the loan after meeting the requirements. Generally, you’ll have to make consecutive, on-time payments for a certain period of time and also meet the underwriting criteria on your own to qualify for cosigner release.
Here are Credible’s partner lenders that offer cosigner release:
Advantage After 36 monthsCitizensAfter 36 monthsCollege AveAfter 24 monthsCommonBond After 36 monthsEDvestinUAfter 36 monthsINvestEd After 48 months of on-time paymentsISL Education LendingAfter 24 monthsPenFed After 12 months
Learn More: How to Pay off Student Loans in 10 Years or Less
Frequently asked questions about refinancing without a cosigner
Here are the answers to a few commonly asked questions about refinancing without a cosigner:
Can you consolidate student loans without a cosigner?
Yes, you can consolidate student loans without a cosigner. Keep in mind that the terms consolidation and refinancing are often used interchangeably, but they mean something different for federal and private student loans.
Federal student loan consolidation: You can consolidate federal student loans into a Direct Consolidation Loan. While this won’t change your interest rate, you can extend your repayment term up to 30 years to reduce your monthly payments — though remember that you’ll pay more interest over time. Unlike with refinancing, you don’t need good credit to federally consolidate your loans, and you don’t need to worry about having a cosigner. You also won’t lose access to your federal benefits.Private student loan refinancing: Also known as private student loan consolidation, this process lets you combine multiple student loans — leaving you with one loan and payment to manage. Depending on your credit, you might qualify for a better interest rate, which can save you money on your overall loan cost. Or you could opt to extend your repayment term to lower your monthly student loan payments. Keep in mind that if you refinance federal loans, you’ll no longer have access to federal protections.
Check Out: How to Consolidate Your Student Loans
What do I do if I can’t get approved for a student loan?
If you can’t get approved for a student loan without a cosigner, you have a couple of options:
Improve your credit. If you can wait to refinance, spend some time building your credit first. There are several ways to potentially do this, such as making on-time payments on all of your bills, paying down credit card balances, or becoming an authorized user on the credit card account of someone you trust.Apply with a cosigner. If there’s no way for you to get approved on your own, you might need to refinance with a cosigner. Keep in mind that a cosigner can be anyone with good credit — such as a parent, other relative, or trusted friend — who is willing to share responsibility for the loan. Also remember that you might be able to remove your cosigner from the loan later on if you qualify for cosigner release.
Learn More: Fixed or Variable Student Loan: Which is Right for You?
Can a cosigner be removed from a student loan?
Yes, there are two ways a cosigner can be removed from a loan:
Cosigner release: Several lenders provide a cosigner release option. This means you could have your cosigner removed from the loan after meeting certain conditions — in general, you’ll need to make consecutive, on-time payments for a specific period of time and meet the underwriting criteria on your own.Refinancing again: You can also remove a cosigner by refinancing your student loan again.
Check Out: How Long It Takes to Pay Off Student Loans
How much does it cost to refinance student loans?
There’s no upfront cost to refinance your student loans. However, keep in mind that you’ll need to pay any interest that accrues on the loan as well as any fees charged by the lender, such as late fees.
Tip: If you want to keep your repayment costs low, it’s a good idea to choose the shortest repayment term you can afford. This way, you’ll pay less in interest over time.
If you decide to refinance your student loans, remember to consider as many lenders as possible to find the right loan for you. Credible makes this easy: You can compare your prequalified rates from multiple lenders in two minutes — without affecting your credit.
Find out if refinancing is right for you
Compare actual rates, not ballpark estimates – Unlock rates from multiple lenders in about 2 minutesWon’t impact credit score – Checking rates on Credible won’t impact your credit scoreData privacy – We don’t sell your information, so you won’t get calls or emails from multiple lendersSee Your Refinancing Options
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Can’t Pay Mortgage Due to COVID? Here are Some Options
Many people are struggling to pay their bills due to the COVID-19 pandemic. But thankfully, as a homeowner, there are several options you can use to request financial relief and avoid foreclosure.
Lenders are willing to help you through these uncertain times, but you should contact them as soon as you fear you might not be able to make your mortgage payment.
Here are some of the ways you can get help paying housing costs during an economic hardship:
ForbearanceCARES ActEmergency rental assistanceMortgage modificationLoan assistanceTalk to a housing counselorRefinance your mortgage
Check your mortgage type
Your COVID-19 mortgage relief options depend on the type of mortgage that you have. The most common mortgage types include:
ConventionalFHAVAUSDA
These loans generally have the most assistance options if you’re behind on mortgage payments.
If you have a conforming conventional loan, Fannie Mae and Freddie Mac offer several mortgage relief options to qualified homeowners impacted by the coronavirus, including a forbearance plan and loan modification.
Non-conforming loans, like jumbo loans and government-backed loans, may have fewer financial protections since Fannie Mae and Freddie Mac don’t secure these loans. If you have one of the loans, contact your loan servicer to review your assistance options.
Tip: Mortgage servicers may ask for proof of hardship if you’re seeking a loan modification, but they generally cannot require you to provide proof of hardship to enter forbearance due to COVID-19.
Forbearance
When your loan servicer approves mortgage forbearance, you have permission to stop making monthly payments or reduce your monthly payment temporarily. However, mortgage forbearance doesn’t cancel out the payments — you’ll still need to repay the deferred principal and interest once forbearance ends.
COVID-19 mortgage forbearance extension: The deadline to request COVID-19 mortgage forbearance has been extended several times. It was most recently set to expire for eligible loans on Sept. 30, 2021.
However, you can now request up to six months of initial forbearance until the end of the nationally declared emergency for FHA, USDA, and VA loans. You may also request an additional six months of forbearance if the pandemic hasn’t ended by the time your initial forbearance expires.
If you requested forbearance between Jul 1, 2021 and Sept. 30, 2021, you’re eligible to request an additional six months of forbearance as well.
Home loans owned by Freddie Mac and Fannie Mae also have an open-ended request window.
Most lenders only issue an initial forbearance period of six months. Then, if you need extra help, you can request a forbearance extension in three or six-month increments until you’re in forbearance for 12 months.
When forbearance ends, you’ll need to repay the amount you deferred. Your repayment options may include:
Reinstatement: This is when you pay the entire deferral amount back all at once. Lenders cannot require this repayment option when claiming a coronavirus hardship thanks to the CARES Act but can for traditional forbearance requests. Repayment plan: You might be able to bring your mortgage current by entering a repayment plan and making additional monthly payments for 12 months after forbearance. Once your mortgage is current again, your monthly payment will return to its normal amount.Defer payments until the end of the loan: Another option is delaying the forbearance payments and paying them back at the end of the mortgage. While you stay in debt longer, you’ll have more time to pay it back and your monthly payment won’t increase.Tip: Your forbearance period may last up to 12 months. Single-family and multi-family properties are eligible. Forbearance also isn’t limited to first mortgages — you may qualify for it on your second mortgage as well.
CARES Act
The CARES Act passage in March 2020 provided several financial assistance programs for individuals. For example, this legislation paved the way for the first stimulus checks.
There are several coronavirus-related mortgage assistance benefits too:
Mortgage forbearance: It’s easier for homeowners to qualify for forbearance for up to 12 months. There currently isn’t an application deadline for conventional or government-backed mortgages.Foreclosure moratorium: Lenders were prohibited from starting the home foreclosure process until after July 31, 2021. While this moratorium expired, most mortgage servicers will not initiate foreclosure until Jan. 1, 2022, or later.Eviction moratorium: The federal eviction moratorium expired on Aug. 26, 2021, after a Supreme Court ruling. Landlords must provide a 30-day eviction notice to tenants.
Currently, only the mortgage forbearance benefit remains active for most homeowners.
Emergency rental assistance
Many states and cities offer emergency rental assistance programs. These programs can help you pay rent or cover utility payments.
You can search for local programs from the Consumer Financial Protection Bureau.
If you own rental property, many programs also accept landlord applications. Being able to collect up to 18 months of unpaid rent can help pay your mortgage on investment properties.
Mortgage modification
You may prefer asking your lender to modify your existing loan if you want to continue making payments and avoid the refinancing process.
A loan modification permanently adjusts your mortgage terms. The main benefits of a loan modification include:
Lower monthly payment: Your lender can reduce your monthly payment (while keeping your interest rate the same) by extending your loan term. You’ll pay more in interest over the long term with this option, but it can give you more breathing room in your monthly budget. Reduced interest rate: Your lender may offer a new interest rate if it’s lower than your current rate. This can significantly reduce your monthly payment. Switch to a fixed interest rate: Your lender may recommend switching from an adjustable-rate mortgage to a fixed-rate mortgage so you have a stable monthly payment for the life of your loan.
Loan assistance
Your state may also offer financial assistance for homeowners, and you might be able to qualify for these programs even if your mortgage is already in forbearance.
Many states receive funds from the U.S. Department of the Treasury’s Hardest Hit Fund to help you when you can’t pay the mortgage due to COVID-19. Oregon, for example, offers a five-year forgivable loan with its COVID-19 Mortgage Relief program. If you’re currently receiving unemployment benefits, your funds may help keep your home loan current and cover up to six additional payments.
Certain local cities also offer mortgage assistance programs. For instance, City of Chicago homeowners with a low or moderate income may receive up to $3,300 in aid.
Tip: Most city and state loan assistance programs have limited funds. If you need help, it’s best to apply as soon as possible as you have a higher probability of securing aid.
Talk to a housing counselor
If you can’t keep up with your mortgage payments and are facing foreclosure, consider speaking with a HUD-approved housing counselor.
This service is often provided for free, and the counselor can help review your repayment options to avoid foreclosure. To find a foreclosure avoidance counselor, use this search tool from the U.S. Department of Housing and Urban Development.
You can also contact your mortgage servicer to review your personalized choices too.
Refinance your mortgage
A mortgage refinance may not be the most practical option when you can’t pay your mortgage due to COVID. Mortgage forbearance and other assistance programs may provide immediate assistance and you won’t have to worry about paying hefty closing costs.
However, refinancing is an option to consider after your pandemic forbearance period ends and you want to change the terms of your mortgage. To do this, your loan will need to be current and your lender may have a minimum waiting period if you’re just exiting forbearance or another assistance program.
Good to know: In most cases, you may be eligible for standard refinancing after three post-forbearance payments. After that, it’s possible to reduce your monthly payment, interest rate, or both.
Depending on your situation, you could have to wait at least 12 months. However, it can be easier to waive this requirement when you claim COVID-19 hardship.
If you think refinancing is the right move, Credible makes the process easy. You can compare multiple lenders and see prequalified refinance rates in as little as three minutes without leaving our site.
Find out if refinancing is right for you
Actual rates from multiple lenders – In 3 minutes, get actual prequalified rates without impacting your credit score.Smart technology – We streamline the questions you need to answer and automate the document upload process.End-to-end experience – Complete the entire origination process from rate comparison up to closing, all on Credible.Find My Refi Rate
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