Refinancing mortgage loan debt consolidating
Consolidating might also allow you to change your repayment schedule.
For example, you might be able to stretch out repayment over 25 years instead of a shorter period.
While you’re refinancing, you might be tempted to include other types of debt into your new loan (auto, credit card, or personal loans, for example).
Although it would simplify things, this generally cannot be done with a student loan.
You can “consolidate” private loans by bundling multiple loans together, but the major benefits of consolidation are reserved for government loans.
This only makes sense if you’re truly going to save money.
Refinancing: Replace a loan (or multiple loans) with a completely new loan, ideally a much better one.
The goal is often to get a lower interest rate to reduce your lifetime interest costs and monthly payment.
In the private market, lenders might be willing to compete for your loans, and you can get a good deal if you have good credit.
Since credit scores change over time, you might be able to do better now if you’ve been making payments on time for several years.