My husband and I are under contract for a new home, and working towards listing our current. If we can sell our current home for what we are hoping, we will gain about $25k. We plan to pay off our car with that, eliminating a $520 car payment. However, I also owe $26k in student loans with an interest rate of 6.675. Payment for those loans are $306/month. The interest on the auto loan is 2.275. Would it be more prudent to pay off student loans, and keep the car payment, or pay off the car and make an attempt to refinance the student loans through a private bank. My initial plan was to apply the money that would have been the car payment (or part of it) towards the student loans to at least double, maybe triple, the payment.
I have not done a lot of research into refinancing privately, so I am unaware if banks will even do such. I feel that they would want collateral, and may hold the car title as such, which would come back around full circle.
I have confused myself mulling this over. Please, share your thoughts.
Submitted August 23, 2017 at 09:22AM by sheclegane http://ift.tt/2g4pZbc
