Refinancing: An Option for More Types of Loans Than You Think

You've probably seen ads that tout the benefits of refinancing your home loan at a lower interest rate. But did you know that there other types of loans you can also refinance?

In addition to refinancing home mortgages or home equity loans, you may also be able to refinance your:

The Advantages of Refinancing

There can be a number of benefits to refinancing your debt.

The Basics of Loan Refinancing

For student loans, the decision and process can be a little more complicated. If you have government loans, refinancing may mean you lose the benefits like income-based repayment, interest rate discounts and loan cancellation benefits. If you have private student loans, the considerations around refinancing are similar to when you're refinancing a personal loan.

Make Sure Refinancing Makes Financial Sense

In most cases, the goal of refinancing your loan is to get a lower interest rate and save money over the life of the loan. Make sure that any new loan you consider helps you achieve that goal. If possible, continue to make your previous higher monthly payments and pay off your loan more quickly or put the money you save each month into your emergency savings fund.

This article is for informational purposes only. For personalized financial advice, you should contact a qualified financial advisor.