A refinance calculator is an online tool that’s designed to calculate potential savings on refinanced student loans. It can also help you choose the loan term that’s best suited for you, given your current financial situation.
Online refinance calculators are user-friendly and incredibly easy to use. You simply enter the information that the calculator asks for and it works out the results for you.
Here’s a step-by-step of how to use a refinance calculator:
There are several tabs in this section, all pertaining to your current loan. You will need to enter information about the following:
You’ve entered in all the information the tool has asked for and you now know how much you’ll have to repay every month.
If you can afford to pay more than the calculated monthly payments, try shortening the loan term. This will increase the monthly payments. This is a great way to clear your debt faster and also save on the accrued interest.
If the monthly payments are unaffordable given your current financial situation, try extending the loan term. This will lower the monthly payments and make them more affordable. With this option, you’ll pay more in interest. You’ll also take longer to clear your debt. However, it will help you avoid the bigger risk of defaulting on your loan.
We hoped you enjoyed this article! Remember, you can compare your personalized rates with our lending partners and potentially lower your monthly student loan payments and save money.