Re: Student loan payments: Actual numbers
Posted: Fri Jan 30, 2015 12:33 am
...probably should've gone for a variable rate.
Law School Discussion Forums
https://www.top-law-schools.com/forums/
https://www.top-law-schools.com/forums/viewtopic.php?f=23&t=220025
Variable is 4.05%, still higher than I expected.zweitbester wrote:...probably should've gone for a variable rate.
I would still jump at that variable rate with how small your debt load is. You will save money regardless if you pay your loan off in two years, and if something went wrong work wise you should atill have no issue servicing the remainder on any income.hous wrote:Variable is 4.05%, still higher than I expected.zweitbester wrote:...probably should've gone for a variable rate.
is this for a 10 year repayment plan?hous wrote:Variable is 4.05%, still higher than I expected.zweitbester wrote:...probably should've gone for a variable rate.
How do you have an 890 on an 850 scale? Didn't VantageScore move to an 850 max along with FICO in 2013?hous wrote:You can try DRB. They advertise lower rates but I can tell you first hand they turn people down, lol. I only have 50k in student loans, make 65k, have a 890 credit score, and own a home outright and they wanted a co-signer.
780~790, my bad. I still think 4.05% variable rate on either a 5 or 10 year repayment plan is a bit high for my situation. I think i'm going to get my wife to co-sign and see if I can get below 3%.JenDarby wrote:How do you have an 890 on an 850 scale? Didn't VantageScore move to an 850 max along with FICO in 2013?hous wrote:You can try DRB. They advertise lower rates but I can tell you first hand they turn people down, lol. I only have 50k in student loans, make 65k, have a 890 credit score, and own a home outright and they wanted a co-signer.
I went with the 3.8% variable / 10 year. I figured If I can get two years under 4% I will be golden and can pay it all off in year 3. If it goes over 4% I will borrow money from my wife and just pay it off in full.hous wrote:780~790, my bad. I still think 4.05% variable rate on either a 5 or 10 year repayment plan is a bit high for my situation. I think i'm going to get my wife to co-sign and see if I can get below 3%.JenDarby wrote:How do you have an 890 on an 850 scale? Didn't VantageScore move to an 850 max along with FICO in 2013?hous wrote:You can try DRB. They advertise lower rates but I can tell you first hand they turn people down, lol. I only have 50k in student loans, make 65k, have a 890 credit score, and own a home outright and they wanted a co-signer.
Just wanted to update this.... These numbers were the numbers on my pre-approval letter. When I signed my loan documents today my interest rate was actually 4.615% w/ autopay discount for a 10 year fixed. VERY happy with my new rate. Good luck to everyone who is refinancing!Anonymous User wrote:Thought I'd share my numbers:
Debt: 157k (most loans are 7.9% and 6.8%). *Debt was originally $189k but we just refinanced our house and pulled out $32k at 3.8% interest rate. Mortgage payment stayed the same and this way we can deduct the interest.
Income: 100k ($76k gross salary + $24k net rental income)
Credit score: 770
Husband Co-signed w/ me. His income is $120k
SoFi (fixed w/ Autopay):
5 year @ 4.375%
10 year @ 5%
15 year @ 5.490%
20 year @ 5.740%
SoFi (variable w/ Autopay):
5 year @ 3.045%
10 year @ 3.045%
15 year @ 3.420%
We are going with the 10 year fixed at 5%. It is tempting to go with 4.375% but we are expecting baby #2 this summer so we need a little wiggle room. If we have any extra cash we will just prepay.
If anyone else is interested in refinancing, you can use my referral link. You will get $100 if you accept a loan from Sofi with my referral link below. Full disclosure, I will get $300.hous wrote:I went with the 3.8% variable / 10 year. I figured If I can get two years under 4% I will be golden and can pay it all off in year 3. If it goes over 4% I will borrow money from my wife and just pay it off in full.hous wrote:780~790, my bad. I still think 4.05% variable rate on either a 5 or 10 year repayment plan is a bit high for my situation. I think i'm going to get my wife to co-sign and see if I can get below 3%.JenDarby wrote:How do you have an 890 on an 850 scale? Didn't VantageScore move to an 850 max along with FICO in 2013?hous wrote:You can try DRB. They advertise lower rates but I can tell you first hand they turn people down, lol. I only have 50k in student loans, make 65k, have a 890 credit score, and own a home outright and they wanted a co-signer.
Yeah, you can. PSLF overseas works as well, if you're working in a nonprofit. (I know someone who did IBR while overseas and her payments counted towards PSLF.)totgafk180 wrote:Anyone know if you can do PAYE while living overseas?
Interesting. My pre-approval rates are literally identical. Maybe we fall into the same risk bucket?Anonymous User wrote:Thought I'd share my numbers:
Debt: 157k (most loans are 7.9% and 6.8%). *Debt was originally $189k but we just refinanced our house and pulled out $32k at 3.8% interest rate. Mortgage payment stayed the same and this way we can deduct the interest.
Income: 100k ($76k gross salary + $24k net rental income)
Credit score: 770
Husband Co-signed w/ me. His income is $120k
SoFi (fixed w/ Autopay):
5 year @ 4.375%
10 year @ 5%
15 year @ 5.490%
20 year @ 5.740%
SoFi (variable w/ Autopay):
5 year @ 3.045%
10 year @ 3.045%
15 year @ 3.420%
We are going with the 10 year fixed at 5%. It is tempting to go with 4.375% but we are expecting baby #2 this summer so we need a little wiggle room. If we have any extra cash we will just prepay.
This is basically like comparing borrowing money from your parents to repay your loans (at an extremely favorable rate that you're getting solely because they are your parents) versus refinancing your student loans with an actual lender. If you think about it, they could simply sell the house and give the $140 to repay your student loans (assuming they don't really care about the house anyways), and you could repay them at a 0% interest rate. The worst case scenario with the HELOC is that you screw your parents out of $150k from the house that they lose since you couldn't repay the mortgage that they took out to help you with your student loans. If the $150k is no big deal for them, then I don't really see the issue, but if they need that money (e.g. maybe they are planning to use that money they get from selling that house to fund part of their retirement), then you're potentially screwing them over (i.e. if you aren't able to repay them). If you're 100% sure that you're going to be able to repay that money (e.g. you're in biglaw in Dallas and are relatively certain you'll be able to repay the money before leaving biglaw), then I don't really see why not just go with the 2% on the HELOC.j0x0c0 wrote:Sorry if off topic - I have a somewhat unique situation. I have approx. $140k in fed loans. I have an offer to refi from DBR for approx. 3% 10-year var. However, my parents have a HELOC for approx 2%.
Is there some reason I shouldn't use my parent's money? I should point out that they have two houses, with the newer one with an approx 4% mortgage rate. It seems obvious that I should pay off my loans using the HELOC. Worst case scenario is we can just sell the house (even at a loss), versus not ever being able to walk away from the student loans.
However, I'm not particularly financially savvy and just want to make sure I'm not missing something. I'm considering paying for a financial planner consultation, but thought I'd check with this knowledgeable source of information first. Thanks in advance!
When is anyone ever 100% sure about this?If you're 100% sure that you're going to be able to repay that money (e.g. you're in biglaw in Dallas and are relatively certain you'll be able to repay the money before leaving biglaw), then I don't really see why not just go with the 2% on the HELOC.
Okay, maybe not 100% sure, but relatively certain (e.g. if you're a 1st or 2nd year associate in Dallas, where your cost of living is practically nothing and you're pulling $110-125k /year after taxes, and where it's not very likely you'll be canned in the next year or two).zweitbester wrote:When is anyone ever 100% sure about this?If you're 100% sure that you're going to be able to repay that money (e.g. you're in biglaw in Dallas and are relatively certain you'll be able to repay the money before leaving biglaw), then I don't really see why not just go with the 2% on the HELOC.
I'm not sure 1% better interest rate is really worth it when you risk losing a house if you can't make your payments. Also, your monthly payments wouldn't be appreciably lower (and definitely not something you couldn't adjust for with some extremely minor lifestyle changes).
i lol'dBiglaw_Associate_V20 wrote:I could rent my JD out to someone for... wait, never mind.