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Questions About Student Loan Refinancing Rates

Is It Better to Have Student Loans or a Mortgage?

My wife and I owe over $150,000 in student debt with interest rates around 9-11% on each loan. Is it better to just refinance our house and pay it all off, for a lower monthly payment and interest rate?

Industry Expert answers:

Student loan interest is also tax deductible
I would shop around for some student loan consolidation companies.
You should be able to get something around 5% for student loans (check Bank of America or other large lenders).

On one hand student loans are unsecured debt which is a fairly high liability in the eyes of some financial institutions.
But many don’t look at it that way because usually at worst they will garnish your wages for a pretty low amount.

On the other hand having little equity in your home can be dangerous too.

My preference would be keep the student loans, but search for a consolidator with lower rates.
9-11% is just robbery.

Is it Better to Have Student Loans or a Mortgage?

My wife and I owe over $150,000 in student debt with interest rates around 9-11% on each loan. Is it better to just refinance our house and pay it all off, for a lower monthly payment and interest rate?

Industry Expert answers:

Yeah, if your sure that you can continue making the payments. Otherwise, you will lose your house. If you quit paying on the student loans, your credit will be greatly affected, but you will still keep your house.

If the payments are not anything to worry about, then I would refinance with a lower interest rate definitely. Even a percentage or two lower is alot of money saved in the long run.

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