FannieMae making easier for homeowners to pay-off their Student Loans
STUDENT LOAN CASH OUT REFINANCE PROGRAM
This week Fannie Mae announced a new Student Loan Cash-out Program and made it easier for those who want to pay off their student loans through cash-out refinance. The refinance is not treated as cash out if the cash out funds are used to pay-off student loans. This makes the interest rate of the new loan much lower than before. All the yield adjustments for cash-out are eliminated.
According to a new survey from Citizens Financial Group, on the standard repayment plan for federal student loans on a 10-year track to pay off their debt, the research shows the average bachelor's degree holder takes 21 years to pay off his or her loans.
Here are some of the advantages of paying off student loans with a refinance:
Today's refinance rates are much lower than the student loan rates.
Lower monthly payments and cash flow relief
New payments can be tax deductible where as the student loan payments are not.
We recommend after refinance, to continue and make the same monthly payments as before. Just pretend that you didn't refinance. This will accelerate the paying off the loan and result in huge savings.
To find out more or if you are interested in the Student Loan Cash-out Program please don't hesitate to contact me.