Derp - dumb refi on my part

[simpsongal]

Fortunately it was a no cost refi - I refinanced my remaining private student loan. It didn't take much time at all, I stayed w/the same company. But I thought I was dropping from 2.89% to 2.5%.... turns out that 2.5% is the rate after an auto pay discount. And my current 2.89% w/the discount was actually only 2.64%. So I went from 2.64% to 2.5% fixed, and added several years to my pay off timeline (ref'ed to a 5 yr loan, when I only had ~3 years left on my other loan).

I can pay it off faster of course, and my monthly payment dropped to $408 (from $543). Total owed is a little under $23K. But DERP. DERP. DERP.

Oh well, maybe I'll enjoy the lower payment during the holidays and while we pay down our variable rate HELOC?

[Cappy]

Don't beat yourself up. Conceptualize it as you have a $135 safety net in the event that payments get tight during that time. I'd just keep paying your old payment and not stress.

[simpsongal]

Aug 18, 2021 13:28:59 GMT -5 Cappy said:

Don't beat yourself up. Conceptualize it as you have a $135 safety net in the event that payments get tight during that time. I'd just keep paying your old payment and not stress.

Hehe, thank you! I think I'm officially too obsessed w/refinancing (I haven't even closed my mortgage one...they're being annoying re: forms and whatnot).

[just]

Aug 18, 2021 12:28:35 GMT -5 simpsongal said:

Fortunately it was a no cost refi - I refinanced my remaining private student loan. It didn't take much time at all, I stayed w/the same company. But I thought I was dropping from 2.89% to 2.5%.... turns out that 2.5% is the rate after an auto pay discount. And my current 2.89% w/the discount was actually only 2.64%. So I went from 2.64% to 2.5% fixed, and added several years to my pay off timeline (ref'ed to a 5 yr loan, when I only had ~3 years left on my other loan).

I can pay it off faster of course, and my monthly payment dropped to $408 (from $543). Total owed is a little under $23K. But DERP. DERP. DERP.

Oh well, maybe I'll enjoy the lower payment during the holidays and while we pay down our variable rate HELOC?

I HATE making mistakes like this - I just can't stop beating myself up. So I totally get how you feel. The good news is that this is still a mostly net positive and it give you more wiggle room on a monthly basis. Give yourself some grace - you're doing great

[Accountingcat]

Mistakes happen! At least it didn’t really cost you anything. My mistakes always result in losing money 😂

[carrotsmakemefat]

Is there a way to refinance fed loans without going private ? I really have been wanting to lower my payment

[simpsongal]

carrotsmakemefat, not an expert, but I think it depends if you're in the forgiveness program or on an income-based repayment program. The rates on fed loans are insane!