Commerce Bank Medical Refinance Loan FAQs

Commerce lets you choose the rate and term that best meets your needs. We offer both 10-year1  or 20-year terms1 with either a fixed or variable interest rate.
  • Variable rates | 7.25% APR2 for a 10-year term1 | 7.50% APR2 for a 20-year term1
  • Fixed rates | 6.75% APR3 for a 10-year term1 | 7.25% APR3 for a 20-year term1

No. The Commerce Bank Medical Refinance Loan has ZERO loan origination fees.

No. The Commerce Bank Medical Refinance Loan has no early repayment fees.  Even though you will always be required to make at least your minimum required payment, you can increase your payments and pay down the loan as quickly as you are able. 

You need to decide what is most important to you and your family.  If paying off debt quickly and saving money are important, consider a shorter, 10-year term with a lower interest rate, but a higher monthly payment.  If you prefer a lower monthly payment, consider a 20-year term with a slightly higher interest rate.  A borrower, selecting a 20-year repayment option, could lower their monthly payment hundreds of dollars1. With no penalty for early repayment, you can always pay more each month to shorten the term as your circumstances change.

Your savings will depend on several factors: the amount of medical education debt you refinance, the loan repayment term and the difference between your old and new interest rates. You can lower your interest rate even more by enrolling in automatic payments.

Consolidating all your loans into one is certainly more convenient than making multiple payments each month. But it may not save you any money.  With the government’s Federal Direct Consolidation program – which applies only to federal student loans – you pay the weighted average interest rate of your existing federal loans, for example.  By refinancing your federal student loans through a private refinance loan program, you will forgo certain benefits and options currently available to you.  For more information, visit https://studentaid.ed.gov/sa/repay-loans/consolidation.

A Commerce Bank Medical Refinance Loan, on the other hand, allows you to consolidate the sum of your federal and private student loans totaling $30,000 - $400,000 into one loan with a new, possibly lower interest rate or a term that better suits your current financial situation.  

When you refinance student loans with a private lender, you lose loan deferment and forbearance options, as well as extended, graduated and income-driven specialty repayment plans.  By refinancing your federal student loans through a private refinance loan program, you will forgo certain benefits and options currently available to you such as federal Income-Driven Repayment plans, deferment, forbearance, and loan forgiveness options.  For information on the Federal Direct Consolidation program, visit https://studentaid.ed.gov/sa/repay-loans/consolidation
 
Most doctors, however, find these loan features are of minimal benefit once their residencies are complete and their incomes are rising.  

Disclosures:

1 10-year variable rate example: a borrower with a $190,000 loan and a variable APR of 7.25% will make 120 monthly payments of $2,230.64 for an estimated total in payments of $267,676.80. 20-year variable rate example: a borrower with a $190,000 loan and a variable APR of 7.50% will make 240 monthly payments of $1,530.64 for an estimated total in payments of $367,353.60.

10-year fixed rate example: a borrower with a $190,000 loan and a fixed APR of 6.752% will make 120 monthly payments of $2,181.81 for an estimated total in payments of $261,817.20. 20-year fixed rate example: a borrower with a $190,000 loan and a fixed APR of 7.251% will make 240 monthly payments of $1,501.83 for an estimated total in payments of $360,439.20.

2 If you choose a variable rate option your rate will vary with the market based on the one-month London Interbank Offered Rate (LIBOR) as published by Reuters on its Reuters Screen LIBOR01.

3 If you choose a fixed rate option the loan the rate will not increase or decrease for the life of the loan.

Information advertised valid as of 10/25/18. COMMERCE BANK RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. To view or print a PDF file, Adobe® Reader® 9.5 or above is recommended. Download the latest version.