Author Topic: Refinancing loan to get lower rates and monthly payments  (Read 5329 times)

penelope

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Refinancing loan to get lower rates and monthly payments
« 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?

Peter

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Re: Refinancing loan to get lower rates and monthly payments
« Reply #1 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.
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dontvote

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Re: Refinancing loan to get lower rates and monthly payments
« Reply #2 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.
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