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Debt Relief – Insolvency – Bankruptcy Information » Student Loan Help » Is it a good idea to include a $18,000 student loan in the refinancing of my home?

Is it a good idea to include a $18,000 student loan in the refinancing of my home?

The loan is a 30 year fixed loan and I am taking it out to pay off credit card debt, other bills and a small amount will go towards fixing up my home. I could sell the condo in 12 months for almost 3x that of the loan amount. Right now I owe 1/6 of the market value.

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5 Responses to "Is it a good idea to include a $18,000 student loan in the refinancing of my home?"

  1. spartaken says:
    answer is rather simple in terms of financial aspect of it.

    If the interest on the refinance is less than interest you are paying on your student loans , you should include your student loan in the refinance of your home.

    Otherwise it is better to pay it off separately.

  2. bullet b says:
    if you can get a lower rate to your over all bill so you end up paying less.
  3. jamesnbarnes says:
    It would depend upon the rate of the student loan. If the rate is really low, I would take the equity and reinvest it in good mutual fund or real estate that will generate a higher rate of return and use that to pay it off. Just my 2 cents.
  4. Yanswersmonitorsarenazis says:
    Student loan interest is often deductible, rates are generally very low, and they’re often for extended periods of time. The longer you have to pay it, the cheaper those payments become over time.

    I almost NEVER recommend paying off student loans with mortgage debt. I don’t care if it saves you another $50/mo. It’s just not a good idea. Unless for some reason you’re at some stupidly high rate on those loans? Anything over 9%, I’d consider it. Anything under, not.

  5. Michael Iarrobino says:
    From a purely financial standpoint if you can get a lower interest rate then it makes sense.

    The problem with using a mortgage to pay off other debts is you are then pledging your home as collateral for the other debts. If for some reason you are unable to make payments you could end up defaulting and losing your home in foreclosure.

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