Student Loan Payoff Refi, a new refinance program offered by SoFi, allows homeowners to pay back their student loans in a creative way.
Since interest rates are low, this program allows homeowners to refinance their student loans into their existing mortgage. This program is backed by Fannie Mae.
Student loans are the bane of my existence. At 6.8% compound interest, I'm counting down the days until I payoff this debt.
I guess everything is relative. I know people who borrowed over $200,000 to pay for their college education. That was just for their undergraduate degree. I can't imagine how much they borrowed for grad school. When I meet with prospective clients, almost all of them have student loans. Sometimes their loans are so high, the only thing I can do is to advise them to pay down their debt.
I believe SoFi's refinance program is the right step to helping (new) homeowners. Most importantly, we need to find new ways to get millennial first-time home buyers into the housing market.
After the 2008 financial crisis, it's clear why mortgage lenders have strict pre-qualifications guidelines. One of them being the debt to income ratio (DTI). However, would it possible to create a first-time mortgage that refinances a person's student loans into their mortgage?
-RO