It’s also attractive to get rid of that monthly student loan payment. “One thing we stress big time: It worries me, taking unsecured debt and making it secured,” said Desmond Henry, a personal financial adviser based in Kansas.“If you lose your job, with a student loan, there is nothing they can take away.Rates for federal student loans are also at their lowest level in a decade — 3.76 percent for undergraduates and 6.31 percent for Parent Plus loans.Homeowners with enough equity in their homes can consolidate their student loans with their mortgage.It’s awfully tempting to trade a 6.8% interest rate on your federal student loan for a 4.75% interest rate on a mortgage.On the surface, the interest rate savings sound dramatic.
“We looked into whether we could remove that cost …
CLEVELAND, Ohio - Homeowners can now refinance their mortgages to pay off student loan debt, according to new guidelines issued by Fannie Mae, the largest backer of mortgage credit in the country.
And new policies will help more borrowers with student debt qualify for a home loan.
It may be best to consolidate the school loans with the first mortgage, even if the interest rate increases, if the student loan’s balance is significant.
Determine if you have sufficient equity to combine the student loans with your mortgage.