How to Put Your Student Loan Into Your Mortgage

You may be able to lower your monthly mortgage payment by including your student loan in your mortgage.

Checkout this video:

Introduction

Congratulations on finally owning your home! This is a huge accomplishment, and you’ve probably been dreaming about this moment for years. But now that you’ve signed on the dotted line, reality is starting to set in. Namely, you’re now responsible for a mortgage payment every month – which may be more than your current rent. And on top of that, you still have student loans to pay off.

It would be nice to just put your student loans into your mortgage and have one less bill to worry about, right? Unfortunately, it’s not that simple. Here’s everything you need to know about wrapping your student loans into your home mortgage.

What You Need to Know Before You Start

Before you can start paying your student loan off through your mortgage, there are a few things you need to know. First, you need to make sure that your mortgage lender offers this option. Not all lenders do. Secondly, you need to make sure that you are comfortable with the idea of having your student loan balance increase along with your mortgage balance. If you’re not comfortable with that, then this probably isn’t the right option for you.

Your Loan Options

The first step in the refinance process is to research your loan options. You can refinance federal and private student loans, but not all lenders offer both types of products. SoFi, for instance, specializes in federal and private student loan refinancing, while Earnest offers both federal and private consolidation loans.

As you compare lenders, look for the following:
-The interest rate you’ll qualify for
-The fees the lender charges
-The repayment terms the lender offers
-Whether the lender allows you to release a co-signer from your loan
You’ll also want to compare rates and terms from multiple lenders to ensure you’re getting the best deal possible.

Your Mortgage Options

When it comes to choosing a mortgage, you have several options. The most common are fixed-rate and adjustable-rate mortgages (ARMs), but there are other choices as well.

Fixed-rate mortgages offer stability in your monthly mortgage payments for the life of the loan, typically 15 or 30 years. ARMs offer lower interest rates for a set period of time, usually five, seven or 10 years, before the rate becomes variable for the rest of the loan term.

Other options include hybrid ARMs, which offer a low initial interest rate that increases or decreases at set intervals during the life of the loan; jumbo loans, which are larger than conventional loans and typically have higher interest rates; and government-backed loans, such as FHA and VA loans.

Your loan term is also important to consider when choosing a mortgage. A shorter term means higher monthly payments but you’ll pay less interest over the life of the loan. A longer term gives you lower monthly payments but you’ll pay more interest over time.

You’ll also need to decide whether you want a conventional loan or a government-backed loan. Government-backed loans, such as FHA and VA loans, typically have more relaxed qualifying criteria than conventional loans. This means they may be an option if you have less-than-perfect credit or a limited down payment. However, these loans also typically come with higher interest rates and mortgage insurance costs.

How to Incorporate Your Student Loan Into Your Mortgage

You can save a lot of money on interest by incorporating your student loan into your mortgage. This can be a great way to manage your debt and pay off your loan faster. There are a few things to consider before you do this, however. Let’s take a look at how to put your student loan into your mortgage.

Step One: Get Pre-Approved for a Mortgage

The first step in incorporating your student loan into your mortgage is to get pre-approved for a mortgage. This means that you will need to provide your lender with financial information such as your income, debts, and assets. Your lender will then tell you how much they are willing to lend you.

Once you have been pre-approved for a mortgage, you will need to get in touch with your student loan lender. You will need to let them know that you are planning on incorporating your student loan into your mortgage. They may have some paperwork for you to fill out.

Your student loan lender will then give you a statement detailing your outstanding student loan balance. This statement will also show how much interest you have paid to date and what your monthly payments have been. You will need this information when you apply for your mortgage.

Step Two: Find a Lender Who Offers Student Loan Debt-to-Income Ratio

You’ll next need to find a lender who is willing to factor your student loan debt into your mortgage. This can sometimes be difficult, as many lenders use the debt-to-income ratio to determine whether or not you’re a good candidate for a loan. Fortunately, there are a few things you can do to increase your chances of finding a willing lender.

The first step is to look for lenders who are willing to work with people with student loan debt. You can find these lenders by searching online or by talking to your financial advisor. Once you’ve found a few potential lenders, you’ll need to provide them with some basic information about your finances, including your income, debts, and assets. You’ll also need to let them know how much you’re hoping to borrow.

Once you’ve found a few potential lenders, it’s time to start shopping around for the best terms. Be sure to compare interest rates, fees, and repayment terms before you decide on a loan. You should also make sure that the lender is willing to work with you if you have any problems making your payments in the future.

Step Three: Apply for Your Mortgage and Student Loan Refinance

You’ve saved for a down payment, you’ve found the perfect house, and you’re ready to start the mortgage process. Now comes the fun part – figuring out how to incorporate your student loan into the equation.

Whether you’re looking to refinance your student loan or get a new mortgage, there are a few things you need to know. Here’s a step-by-step guide on how to put your student loan into your mortgage.

Step One: Know Your Options
The first step is to understand all of your options. You can choose to refinance your student loan through a traditional lender or through a government program like the Income-Based Repayment plan. You can also choose to get a new mortgage and include your student loan as part of the down payment.

Step Two: Compare Rates and Terms
Once you know your options, it’s time to compare rates and terms. This is where doing your research pays off. Make sure you compare apples to apples and lock in the best rate possible.

Step Three: Apply for Your Mortgage and Student Loan Refinance
Now it’s time to fill out those application forms. Be sure to include all of your pertinent information, such as employment history, credit score, and debt-to-income ratio. Once you have everything filled out, it’s time to submit your applications and wait for approval.

Step Four: Close on Your Mortgage and Student Loan Refinance
If everything goes according to plan, you should receive approval for both your mortgage and student loan refinance within a few weeks. Once you have approval, it’s time to close on both loans and start making those monthly payments!

Conclusion

If you’re struggling with student loan debt, you’re not alone. In fact, you’re among the 44 million Americans who collectively owe more than $1.48 trillion in student loan debt.

1) Determine if your loans are eligible.
2) Compare the benefits and drawbacks of this strategy.
3) Weigh your options and make a decision.

If you’re thinking about consolidating your loans or refinancing your mortgage, there are a few things you should consider first. As with any major financial decision, it’s important to do your research and understand all of your options before making a decision.