Education is expensive, and student debt is on the minds of many Americans. Even if you’ve graduated 5, 10, or 20 years ago, you may still have lingering student debt with impossible levels of interest. As you progress through life and earn an increasing amount of income, you’ll likely find ways to qualify for loans with superior interest rates to your student debt.
Because of this, it might be smart to consider refinancing or reconfiguring your student loan repayment situation. And if you’re a homeowner, you may have the equity you need to do just that.
The average daily mortgage interest rate for Friday, February 9, 2024 is 6.98% for a 30 year fixed rate. The rate rose 0.01% from yesterday and rose 0.18% from December 2023. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.
Lenders in the freerateupdate.com network are currently offering rates as low as 5.9% (6.1% APR) on a 30-year fixed-rate mortgage. Receive a rate up to 1.08% lower than today’s average 30-year mortgage rate if you qualify. ⓘ
The average daily mortgage interest rate for Friday, February 9 2024 is 6.33% for a 15 year fixed rate. The rate is the same as yesterday and rose 0.26% from January 2024. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.
Lenders in the freerateupdate.com network are currently offering rates as low as 4.9% (5.2% APR) on a 15-year fixed-rate mortgage. Receive a rate up to 1.43% lower than today’s average 15-year mortgage rate if you qualify. ⓘ
What to know about home equity loans for paying down student debt
Lingering student debt makes many Americans feel like they’re not able to move on with life and pursue future goals. Some people are even trying to save for their kids’ college funds while paying down their own student debt. With unsubsidized and PLUS loans well over 7 in the past and present, it’s certainly possible to save a pretty penny by taking out a home equity loan at a lower rate.
The real difference with student loan debt: fixed vs. variable
Student loans come in two varieties: fixed and variable. If you got a fixed rate loan, this means the rate on your loan doesn’t change with time. Variable rates, however, are another story. Those rates change based on an index, and variable rate student loans are what cause a lot of hardship for people who have taken them out.
One of the better ways to save money by paying down student loan debt with a home equity loan is to secure a fixed rate home equity loan to pay off a student loan with variable interest, especially if that interest rate is high.