If you’re considering refinancing your loan, you may want to wait until you can secure interest rates lower than your current rates. You may have to work on improving your credit score to achieve those lower rates.
Refinancing a personal loan might be a good idea if you need to lower your monthly payments or need the cash to pay down other debts. Conversely, if you can afford a higher monthly payment, refinancing for a shorter term may mean that you can reduce the total amount spent on interest and pay off your debt sooner. Before applying for a new loan, crunch the numbers to be sure that refinancing makes sense financially even after factoring in the associated fees.