Should You Refinance Your Loan? Pros, Cons, and How to Decide

Refinancing can save you money—but it’s not always the right move. Here’s what to consider:

When to Refinance

• Interest rates have dropped since you got your loan
• Your credit score has improved
• You want to lower your monthly payment or pay off debt faster

Benefits

• Lower interest rate
• Reduced monthly payment
• Shorter loan term

Potential Downsides

• Closing costs or fees
• Extending your loan term could mean paying more interest over time
• Losing borrower protections (for federal student loans)

How to Decide

Use our free loan calculators to compare your current loan with potential new terms. Factor in all fees and your long-term goals.

Conclusion

Refinancing can be a smart move, but it’s important to do the math. Our calculators make it easy to see if refinancing is right for you.