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?
2007-03-27 08:23:16 · 8 answers · asked by HoustonJustin 1 in Business & Finance ➔ Credit
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.
2007-03-27 09:39:09 · answer #1 · answered by manns41078 2 · 0⤊ 0⤋
I would say student loans, but it could work either way. You have the option to write off your mortgage interest if you have a mortgage loan, but typically you can get a student loan consolidation at a good rate and sometimes even interest deferred. I got my student loans at 3.5%. If the best you can do is 9-11 the mortgage may look more attractive, but the interest is computed differently so you might end up paying longer.
2007-03-27 08:28:59 · answer #2 · answered by Beach Bum 2 · 0⤊ 0⤋
Pay off the student loans. You should be able to get a mortgage at around 6.25% these days. The student loan rates are outrageous; how did you manage to get loans with rates that high?
2007-03-27 09:03:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Egad, that's the highest interest rate I've seen on student loans ever! I'd suggest refinancing your student loans if at all possible. I wouldn't want to risk a home that's paid off over student loan debts that, at worst, will be garnished from your wages.
2007-03-27 08:27:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It's tax deductible on the mortgage, so refi. Refi with a fixed rate, don't do an ARM.
2007-03-27 08:30:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
refi student loans... go with whatever gives you the lowest interest rate.. hands down
2007-03-27 08:44:01 · answer #6 · answered by ik ben alphabetsoup 3 · 0⤊ 0⤋
Read the find print, if you refinance! People are losing their houses over "teaser" rates.
2007-03-27 08:36:20 · answer #7 · answered by Lisa 6 · 0⤊ 0⤋
mortgage earns equity and retains value
2007-03-27 08:30:15 · answer #8 · answered by Anonymous · 0⤊ 0⤋