New Lending Practices Let People Afford to Buy Homes, Refinance, AND Pay Off Student Loans!
NEWS FLASH: Some lenders are allowing homeowners to consolidate the student loan with a mortgage loan. Depending on your interest rates, you may be able to lower the interest rate on both.
A few lenders are approved to offer these loans under Fannie Mae’s terms. With this new loan option, the lender will be paying the student loan payment directly to the student loan servicer and paying down the mortgage loan.
What it means: This new program consolidates both the student loan(s) and the mortgage loan into one loan and one payment, and possibly lowers the rate on all the loans.
Who it helps: According to Experian data, the average homeowner with outstanding cosigned student loans has a balance of $36,000 on those student loans, and those with outstanding Parent PLUS loans have $33,000 in student debt. This loan option is critical since it will free borrowers from the higher interest rate student debt they have and offer a means to pay it back at a lower interest rate, therefore lowering the overall cost of the loan. It is estimated that 8.5 million households in the U.S. could potentially pay down or completely pay off their student debt obligations with this new option.
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We would be happy to help you learn more about combining your student and mortgage loan into one loan. Email me here. Please put “Student Loan Information” in the subject line.
And if you want to know more about other borrowing or refinancing options or ANYTHING ELSE ABOUT BUYING OR SELLING A HOME…
Buying or selling a home is a big decision. Don’t go it alone.