Student Loans have caused turmoil when buying a home... Here is a possible solution!
Thank you Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
for another very informative post!!!
Student Loan Debt Solution Found viaFannie Mae's "Student Loan Cash-Out Refinance"Mounting Student Loan debt has become a huge concern ...This is true not only for individuals carrying student loan, but for GSE's (Government Sponsored Enterprises) like Fannie Mae that oversees and ensure mortgage liquidity and guidelines to Banks, Lenders, and Mortgage Providers.
In a previous post, I noted that Fannie Mae had revised guidelines as they pertain to treatment of Student Loan Debt when applying for loan. Those changes were favorable for Home Buyers carrying student loan debt, as they allowed Mortgage Underwriters some flexibility in examining and allocating for student loans.
This new more relaxed view removed some financing obstacles and made it easier for Mortgage Lenders to reach mortgage approval for Borrowers. It opened the door for more potential Borrowers with Student Loan Debt to qualify for a Mortgage and buy homes. A very welcomed outcome.
Now, adding to that earlier positive change, another new financing option offers hope to those that hold student loans. It comes in the form of financing called the "Student Loan Cash-Out Refinance Option". The refinance option is backed by Fannie Mae and other wholesale lenders.
A cash-out refinance option has long been an option available for homeowners with home equity. Those homeowners could use the refinance to pay off debts of any kind.But with this new refinance option, when paying off Student Loan debt, certain costs normally charged to a borrower are "forgiven" or "eliminated".
In turn, these savings result in either a:
- Lower interest rate offering
- Additional "cash out" at Closing
It truly can be a real benefit to Borrowers to finance in this manner.
As with any new program, there will be a learning curve felt by lenders, but for current homeowners with sufficient equity looking to reduce or eliminate higher interest rate Student Loans and higher Student Loan payments ... there can be profound relief found via a "Student Loan Cash-Out Refinance".
Should you want more information, have questions regarding this new Student Loan Cash-Out Refinance (or other mortgage options), or your eligibility for putting this new refinance option to work for your benefit, please contact me. I'll be happy to answer all your questions and assist you moving forward.* Looking to find what possibilities exist for you?Are you hoping to Buy, Refinance or purchase an Investment Property New Lenox, Will County, or elsewhere in the Chicagoland area?Contact me! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Mortgage Originator - NMLS #216987
IL Lic. #031.0006220 - WI License #216987
Gene Mundt, Mortgage Originator, 40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking: #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including: The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin.
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