A Smart Way to Reduce Student Loan Debt

May 9, 2018 By

We understand that many Americans feel the burden of student loan debt.  Many potential homebuyers and home owners are left wondering where else they could be using those valuable student loan payments in their daily lives. According to Experian data, the average homeowner with outstanding student loans has a balance of $36,000, and those with outstanding Parent PLUS loans have $33,000 in student debt!

Student Loan Debt is Not the End!

Not only do we finance home loans for buyers with student loan debt, but we have the ability to help them pay off their student loan debt and more through a Student Loan Cash-Out Refinance!

With the Student Loan Cash-Out Refinance, homeowners can completely pay off one or more student loans and be on their way to complete financial freedom! It’s a win-win!

No Extra Premiums!

Traditional cash-out refinances allow the homeowner to cash in on their home’s equity by refinancing their primary mortgage, but premiums can be added to the mortgage rate. The Student Loan Cash-Out Refinance waives these premiums and allows homeowners to refinance an existing mortgage and cash-out to repay student loans.

Student Loan Requirements:

  • At least one student loan must be paid off. Loan proceeds must be paid directly to the student loan servicer at closing.
  • Only student loans for which the borrower is personally obligated can be paid through the transaction.
  • Student loan debt must be paid in full with the proceeds – partial payments of student loan debt are not permitted.

Maximum Cash Back:

  • The borrower may receive cash back in an amount that is between 2% of the new refinance loan amount or $2,000 (whichever is less).

Uses for Cash Back:

  • To pay off an existing first mortgage loan (including an existing HELOC in first-lien position).
  • To pay off a single-closing construction-to-permanent loan to pay for construction costs to build the home, which may include paying off an existing lot lien.

Restrictions:

  • Property cannot be listed for sale at the time of disbursement
  • Payoff of taxes is ineligible unless an escrow account is established
  • Payoff delinquent taxes ineligible

If you have student loans to pay off and currently own a home, you may qualify for this life changing refinance program! Please give PRM a call with any questions you may have about the Student Loan Cash-out Refinance.

Categories: