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Your home can be your biggest asset and a primary tool for building wealth over the long term. But like other assets you invest in, such as stocks and bonds, the value fluctuates. These fluctuations can put you underwater with your mortgage.

Here’s what you need to know about underwater mortgages and what you can do if you have one:

What is an underwater mortgage?Signs of an underwater mortgageProblems with underwater mortgagesUnderwater mortgage options

What is an underwater mortgage?

An underwater mortgage, also known as an upside-down mortgage or having negative home equity, is a home purchase loan with a principal balance that exceeds the value of the home — in other words, you owe the lender more than your home is worth.

Underwater mortgages were common during the Great Recession from 2007 to 2009, when home values throughout the country plummeted and continued to decline for several years after the recession’s end. Homeowners with purchase or refinance loans based on pre-crash home values found themselves underwater as a result.

Underwater mortgages are less common today because of tighter underwriting standards and record price increases since the pandemic. Median home prices increased nearly 25% from June 2020 to June 2021, so there’s a good chance that your home is worth more now than when you bought it.

Signs of an underwater mortgage

Situations that might push you into negative equity include a decrease in local property values. A low appraisal is also a good indicator that you might be underwater on your mortgage.

Here’s how to find out if your loan is underwater.

Figure out how much you owe

You can find out how much you owe by checking your mortgage statement. You’ll see the amount listed under “principal balance” or “outstanding principal”.

If you need to know the exact amount immediately, you’re best off calling your loan servicer and asking for your payoff amount. That figure will include interest and fees that have accrued since the lender prepared your statement.

Whether you’re researching rates or looking to buy a home, Credible is here to help. You can compare prequalified rates on home loans from all of our partner lenders in just a few minutes.

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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Determine your home’s value

The only way to get an accurate opinion of value is to have your home appraised by a licensed home appraiser. A professional home appraisal is usually worth the cost if you’re hoping to sell your home. Otherwise, you can get a ballpark figure for free from a real estate portal site like Redfin or Realtor.com.

Subtract your home value from your principal balance

The final step is a simple math problem that will show whether you’re underwater:

Value – Balance = Equity

If, for example, your home is worth $200,000 and you owe $225,000 on your mortgage, the equation will look like this:

$200,000 – $225,000 = -$25,000

In this scenario, you’re $25,000 underwater on your home loan.

Problems with underwater mortgages

An underwater mortgage doesn’t always have a negative impact on a homeowner. If your mortgage is affordable and you’re not planning to sell or refinance, you might not worry about it at all. However, when that’s not the case, an underwater mortgage can put you at a serious disadvantage.

Refinancing

Lenders protect themselves against default by limiting how much of your equity you can refinance. The limit might be 80% for a cash-out refinance, for example, or 95% for a rate-and-term refinance. But if you have negative equity, you have nothing to draw against.

Even in the event you find a loan that lets you refinance 100% of your home’s value, the new loan won’t fully repay the underwater one. In that case, you’ll have to pay enough cash at closing to make up the difference.

Also See: How to Refinance Your Mortgage in 6 Easy Steps

Selling

Most mortgage loans have a due-on-sale clause that makes the loan due in full when the owner sells. In the case of an underwater mortgage, where the sale won’t cover the amount needed to pay off the loan, you’ll need enough cash at closing to make up the difference.

Foreclosure

Your lender can’t foreclose simply because you’re underwater, but being underwater increases your risk of foreclosure because it limits your options. Since you might not be able to refinance or sell the home, there’s a greater chance of your home going into foreclosure if you can no longer keep up with the mortgage payments.

Underwater mortgage options

You don’t necessarily have to take action when your mortgage is underwater, but it’s probably a good idea, even if only to ward off future problems. If you’re already struggling, a quick response can keep you from losing your home.

Stay in your home

The simplest option is to remain in your home and continue making your regular mortgage payments. By paying down your principal balance, you’ll continue to build equity. Consider making extra principal payments to pay down your loan balance faster.

You can also try to increase the value of your home. Home remodeling projects rarely generate a positive return on investment unless you can do the work yourself, but simple jobs that improve curb appeal can give your home value a boost for little cost beyond elbow grease.

Tip: If you can’t afford to make extra principal payments or remodel your home, sit tight and wait for a market cycle more favorable to sellers. This can right your mortgage naturally as values appreciate.

Refinance

Refinancing an underwater mortgage is tricky because you typically need equity to do it. However, you might be in luck if your loan is backed by Freddie Mac.

The Freddie Mac Enhanced Relief Refinance is meant for homeowners whose mortgages are underwater. This option could make your loan more affordable by lowering your mortgage rate and monthly payment or allow you to increase your equity faster with a shorter repayment period.

The program is available if you took out your home loan on or after Oct. 1, 2017, and are current with payments. Additional requirements include having had no 30-day delinquencies within the last six months and no more than one 30-day delinquency in the last year. Fannie Mae has a similar program but has paused it temporarily.

What about government-backed loans? Certain government-backed loans may still allow you to refinance if your mortgage is underwater. The FHA streamline refinance program, for instance, doesn’t require an appraisal, so you can refinance your FHA loan even if you have negative equity.

On the other hand, the VA no longer guarantees loans where the loan-to-value ratio exceeds 100%. Some lenders do set a higher cap on streamline refinances, but the cap includes closing costs and funding fees that the lender rolls into the loan. These costs can put you even further into negative equity.

Sell your home

You’ll have to meet one of two conditions to sell a home with an underwater mortgage:

Make up the difference between your loan balance and the sale price with a cash payment at closingGet permission from your lender to sell short

Unless you’re struggling to make payments, in which case you probably lack the funds to bring cash to closing, it doesn’t make sense to sell while your mortgage is underwater. But if you are struggling, a short sale can be an alternative to foreclosure.

Your lender won’t allow a short sale unless you document a hardship that’s likely to keep you from making payments for the foreseeable future, such as a job loss or disability. It can also take months before your lender approves the short sale.

In the meantime, you might rack up enough late payments that a short sale will do as much harm to your credit as a foreclosure would. And if the lender does approve the short sale, you might have to pay tax on the amount of the loan balance the lender forgives.

Walk away

Your last resort is to simply walk away from your home and let the lender foreclose on it. This option is called a strategic default because you’ll have concluded that you’re unable to stay in the home and instead plan to use the money to pay off other debt or build savings for rent.

Foreclosure will negatively impact your credit and remain on your credit report for seven years. As such, you might find it difficult to rent a home. Paying some or all of your rent upfront, though, gives you a better chance at having your rental application approved.

Important: One more option you can try before walking away is a loan modification. This is an agreement between you and your lender that changes the terms of your loan and makes your mortgage payment more affordable. Your credit might still take a hit, but it can at least help you avoid foreclosure. Talk to your lender to see if you qualify.

The post Underwater Mortgage: What Is It and What Are Your Options? appeared first on Credible.

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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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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

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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.

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.

View details>
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.

View details>
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.

View details>
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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The post 13 Best Loans for Refinancing Student Loans Without a Cosigner appeared first on Credible.

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.

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While nobody wants to miss a mortgage payment, it can happen — especially if money is tight one month.

Generally, missed payments can cause your credit score to plunge and lead to late fees. Multiple missed payments can even lead to foreclosure, further damaging your credit and leaving you with no home. But it doesn’t all occur at once.

Here’s what happens if you miss a mortgage payment:

The typical timeline of missed mortgage paymentsCOVID-19 and mortgage foreclosuresHow does a late mortgage payment affect my credit score?How much will a mortgage late fee be?How can I skip a mortgage payment without penalty?

The typical timeline of missed mortgage payments

A mortgage payment that’s overdue by just a few days might not have any impact on your credit. That’s because most loan servicers offer a grace period where you can make a payment within 15 days after the due date without penalties. After the grace period, it may charge you a late fee, which should be explained in your loan documents.

But failing to make a payment altogether can negatively affect your credit and the home loan.

One missed mortgage payment

Your servicer will likely report the missed payment to the credit bureaus once it’s 30 days late. This can hurt your credit score. Generally, a late payment can cause more damage for people with higher credit scores.

If you haven’t made a payment for 36 days, your loan servicer is required to contact you — though it may reach out sooner.

Good to know: The servicer can’t start foreclosure proceedings right away, but the late payment is a serious matter nonetheless.

Two missed mortgage payments

Once you’re 45 days past due, your loan servicer may assign someone to your account. They’ll contact you and let you know about your options.

After 60 days — or two missed mortgage payments — you’ll incur a second late fee. The late payment will also be reported to the credit bureaus.

Don’t Miss: What to Do If You Fall Behind on Mortgage Payments

Three missed mortgage payments

After three missed payments, your loan servicer will likely send another letter known as a demand letter or notice to accelerate. The letter acts as a notice to bring your mortgage current or face foreclosure proceedings.

Additionally, your loan servicer will report the late payment to the credit bureaus, which may cause your credit score to drop even more.

Four missed payments

Once you’re 120 days past due, if you haven’t arranged to make repayments with your bank, your loan servicer can start the legal foreclosure process. It can also add attorney fees to your balance.

The loan servicer’s attorney will schedule a home sale and notify you of the foreclosure date. This date varies with each state, but it may be as soon as two or three months after receiving your demand letter.

Good to know: If you make arrangements with your lender or pay the total amount due before the date of sale, you may be able to keep your home.

The loan servicer will also report the newest late payment to the credit bureaus, and your credit score may drop once again. Each late payment can stay on your credit history for up to seven years.

To find a great mortgage rate, be sure to shop around. Credible lets you do this easily — compare home loans from all of our partner lenders in one place. It’s free, and checking rates with us will never affect your credit score.

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COVID-19 and mortgage foreclosures

Since early 2020, more than 7 million homeowners have taken advantage of mortgage forbearance programs to keep their accounts in good standing. Additionally, the U.S. government put a moratorium on foreclosures through the first half of 2021.

Although both measures helped foreclosure activity reach historic lows in 2020, homeowners may need to find another form of assistance. The foreclosure ban expired July 31, 2021, and about 1.75 million homeowners were still in some sort of forbearance program.

You might be able to extend your forbearance protection or get your account current by calling your mortgage lender and setting up a plan.

This can keep your account and credit in good standing. But if you can’t restart payments, your loan servicer will need to take extra steps — such as evaluating you for assistance programs — before starting the foreclosure process.

Mortgage forbearance

With mortgage forbearance, your loan servicer agrees to temporarily pause your monthly mortgage payments for a certain period of time. It also won’t start the foreclosure process.

During the coronavirus pandemic, lenders can report that your mortgage account is in forbearance. But, per the CARES Act, your account must be marked as “current” if it was in good standing before entering forbearance.

If your loan is federally backed, you can call your loan servicer and request pandemic-related mortgage forbearance until Sept. 30, 2021. Extensions may apply, too:

Fannie Mae and Freddie Mac loans: Conventional loan borrowers may request an extension for a maximum of 18 months of forbearance. You may be eligible for the extension if you entered forbearance before Feb. 28, 2021.Government-backed loans: Borrowers with a loan backed by the FHA, VA, or USDA may request an extension as long as they enrolled in forbearance on or before June 30, 2020.

Loan repayment options

If you’re 120 days or more past due on your mortgage payments or you’re about to exit a mortgage forbearance program, your loan servicer must reach out to discuss options.

Here’s how you may be able to rehabilitate your account and avoid foreclosure:

Defer payments: You can resume regular mortgage payments and move any missed or suspended payments to the end of the loan term. This option is usually available for Fannie- and Freddie-backed loans, VA loans, FHA loans, and USDA loans.Modify the loan terms: The servicer may agree to a loan modification, where you change the loan’s length or interest rate to make the payments more affordable. On federally backed loans, your servicer may be able to lower your mortgage payment by 25% or more.Enter a repayment plan: You can also create a repayment plan with your loan servicer if you have a conventional mortgage, FHA loan, USDA loan, or VA loan. You’ll spread your unpaid balance over a certain period of time — such as 12 months — on top of your regular mortgage payments. This will temporarily result in higher monthly payments.Reinstate the loan: This option lets you pay back the outstanding balance all at once. Under all federally backed mortgage programs, loan servicers can’t require you to pay off your forbearance balance with a lump sum. But you can choose to do this if you have the funds.

Foreclosure safeguards

The loan payment options mentioned above may work for borrowers who are financially sound. But the loan servicer may be able to start the foreclosure process if a borrower still can’t make payments after forbearance ends or after missing four payments.

However, homeowners are protected by three new safeguards established by the Consumer Financial Protection Bureau. Before starting foreclosure, the loan servicer must:

Ask the borrower to complete a loss mitigation application. The loan servicer must give you the opportunity to pursue loss mitigation, which may prevent foreclosure. Loss mitigation options include some of the repayment options we’ve already discussed (such as loan modification and repayment plans) as well as a short sale.Confirm the property is abandoned. If loss mitigation doesn’t work, the loan servicer may start foreclosure proceedings after confirming a property is abandoned under local and state laws.Reach out to the borrower. The loan servicer will also need to make a reasonable effort to reach the borrower.

These new safeguards apply on top of existing rules that bar loan servicers from starting the foreclosure process until a homeowner is at least 120 days past due on a home loan. They’ll be in effect from Aug. 31, 2021, to Dec. 31, 2021.

How does a late mortgage payment affect my credit score?

When you’re at least 30 days behind on mortgage payments, your loan servicer reports the information to the credit bureaus. The late payment can remain on your credit reports for up to seven years, and it may affect your credit score during this time.

Missing several payments in a row can damage your credit score more than missing only one payment. And multiple missed payments could result in foreclosure, which is one of the most damaging negative marks you can have on your credit.

How much will a mortgage late fee be?

Homeowners usually have a grace period of 15 days after the due date to make their mortgage payment. After that point, you may pay a late fee for each month that you miss a payment.

The late fee is set by state law, but it usually equals 3% to 6% of your monthly payment. So, if your mortgage payment is usually $1,000 and your late fee is 5%, then you may be on the hook for an extra $50 for each month you go without paying.

How can I skip a mortgage payment without penalty?

If you stop making mortgage payments but you’re in a foreclosure-prevention program — such as forbearance, loan modification, or a short sale — then you might be able to avoid foreclosure and the credit hit. Perform some research and request one of these options when you’re having financial problems.

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