Our brokers will help you determine if breaking your mortgage to refinance and paying an early payout penalty will save you money in the long term.
If so, the prepayment penalties can be absorbed into the new mortgage loan, leaving you without any out-of-pocket expenses to pay.
Another advantage to refinancing is accessing a property’s equity.
Additionally, borrowers can decide to utilize either an adjustable-rate mortgage or a fixed-rate mortgage, weighing the advantages and disadvantages of each.
While refinancing a mortgage can save a large amount of money, it can also cost money.
Student Loan Hero is not a lender or investment advisor.
We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions.
Rolling student loan debt into a mortgage (also known as “debt reshuffling”), allows you to refinance your mortgage with either a new loan or an additional home equity loan.
The money from this new loan can then be used to pay off your student loan debt.If you’re looking to get out from under your student loan debt, it’s important to think through any strategy that lowers your monthly payments.This especially applies to the prospect of rolling your student loan debt into a mortgage.The whole point of refinancing is to improve a borrower’s financial decision, so if a prepayment charge will result in financial stress that will not be improved through a refinance, it may be wiser to stay with the current mortgage.In addition, costs associated with closing a loan will apply to a refinance.Some mortgages may feature a prepayment penalty that will result in fees for breaking its terms.