STUDENT LOAN CASH-OUT REFI

Lower Rates.  Fewer Monthly Bills. 

TAKE ADVANTAGE OF LOW MORTGAGE RATES AND DECREASE YOUR MONTHLY EXPENSES WITH A 

STUDENT LOAN CASH REFINANCE 

Put those high rate student loans behind you!  The student loan cash out refi qualification is often easier than a standard cash out refi, and a the traditional

cash-out rate premium is waived.

LOAN HIGHLIGHTS

  • Flexibility to pay off high interest rate student debt while potentially refinancing to a lower mortgage interest rate.

  • Increases the ability for a borrower to qualify by excluding credit cards, auto loans and student loans paid by someone else from the borrowersds debt-to-income ratio. 

  • Makes it more likely for borrowers with student debt to qualify for a loan by allowing lenders to accept student loan payment information on credit reports. 

BORROWER ELIGIBILITY

  • Anyone who is legally obligated to repay a student loan is eligible as long as the meet the borrower requirements.

  • If co-borrowers are applying, at least one is required to have a student loan.

  • It applies to both students and parents or relatives who have taken out or guaranteed student loan debt for someone else.  Parents could use the equity in their home to pay off student loan debt that was taken out for their children.

USE OF LOAN PROCEEDS

  • At least one student loan must be paid in full with the proceeds from the loan.

  • The proceeds must be disbursed directly to the student loan lender.

  • You may pay off more than one student loan but partial payoffs are not permitted.

  • The borrower may not personally receive more than 2% of the loan amount (or $2,000 whichever is lower) in proceeds from the student loan cash out refiance.

THINGS TO CONSIDER

  • You will end up with a lower interest rate and your loans paid back, but with a larger mortgage, less equity and without some of the protections offered by a federal student loan.

    • a home loan uses the home as collateral if the loan isn't paid, defaulting on a student loan can ruin a credit score, but it usually doesn't have a home as collateral. ​

    • federal student loans allow payments to be deferred for a job loss, or payments can be adjusted if your income decreases.  Student loans can also be deferred for special situations - such as going abroad for a volunteer organization.

  • You will end up with a longer loan term.  Student loans usually last 10-20 years while mortgages are often 30 years - but it will be at a lower rate. 

  • Makes it more likely for borrowers with student debt to qualify for a loan by allowing lenders to accept student loan payment information on credit reports. 

TO CONTACT OUR TEAM,

CALL, TEXT, OR EMAIL:

SIMPLICITY MORTGAGE

386.401.9000

INFO@SIMMORTGAGE.COM

COMPANY NMLS # 1755062

411 DUNLAWTON AVENUE

PORT ORANGE, FL 32127

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