Lend Academy Network Forum

Prosper Discussion => Borrowers - P => Topic started by: penelope on January 20, 2014, 07:34:37 PM

Title: Refinancing loan to get lower rates and monthly payments
Post by: penelope on January 20, 2014, 07:34:37 PM
Hi, I am about to pay off my 1st loan with Prosper (this will be an early payment). Since I also have a very expensive Lending club loan, I am considering to refinance it by applying for a 2nd loan with Prosper to get better rates and lower monthly payments.

How are my chances for doing this?
Title: Re: Refinancing loan to get lower rates and monthly payments
Post by: Peter on January 20, 2014, 11:04:19 PM
Hi Penelope, Thanks for signing up - we love to hear from borrowers.

As to your question, I would say it all depends on your credit. If your credit has improved since the last time you applied for a loan then I think it is highly likely that you will receive a lower rate and will be able to pay off your Lending Club loan. You can always apply for a loan to discover your rate at Prosper without hurting your credit score.

Good luck and let us know what happens.
Title: Re: Refinancing loan to get lower rates and monthly payments
Post by: dontvote on January 21, 2014, 03:55:49 PM
In general this is a good plan but don't forget to account for the transaction costs in refinancing. There isn't much point swapping a 18.99% loan for a 16.99% loan. Those transaction fees are gone gone so consider spending that money on paying down the principal.