Not Your Typical Cash-Out: Using Your Mortgage To Eliminate Student Loans

You earned your college degree years ago, but your college days are still a part of your life. Unfortunately, instead of pitching in $5 for an occasional late-night pizza, you’re writing a monthly check to pay off your student loans. You’re also dealing with other bills that come with adulting, such as mortgage payments, car payments and utilities. It gets pretty overwhelming!

At MortgageDepot, we understand that it’s not feasible to wait until you’ve paid your student loans before you embark on your real estate journey. Many of our clients come to us with student loans on their list of monthly responsibilities.

Wouldn’t it be nice to write one less check per month? When you partner with us, this might be a possibility! If you have student loans, we have a way for you to roll your debt into your mortgage without going through a typical cash-out refinance.

Using Your Mortgage To Pay Off Student Loans: How It Works

It’s easy to qualify for a student loan cash-out refinance with MortgageDepot. Here are the requirements:

• You must use the money received to pay at least one student loan balance in full.
• You must use the money received to pay for a student loan in your name. You cannot use it to pay off a dependent’s student loan balance.
• The money must be sent directly to your student loan servicer.
• Your new loan cannot exceed 80% of your home’s value.

Program Benefits

If you qualify for a student loan refinance, the benefits go beyond writing fewer checks every month. Here is a list of program pros:

• You might be able to roll closing costs into the loan amount.
• You might reduce your debt-to-income ratio to qualify for a rate/term refinance or another type of loan down the road.
• If you roll student loan debt into your mortgage, you might be eligible for tax incentives.

Contact MortgageDepot

If looming student loans are holding you back, this program might be a sound solution. Contact us today to learn more about refinancing your student loans into your mortgage!

Connect with one of our loan consultants to learn more.