Question: Should i include my student loans in a home refinance?

(Posted by: Kat on 2010-07-24 10:21:57)

We are about to refinance our home at 3.85 % for a 15- year loan. We have 40k of student loans at 5.75 %. Including this amount in our mortgage will not get us to the point where we will have to pay PMI. Is this a good idea? If yes, why. If no, why not?

Posted by: falsifiable on 2010-07-24, 10:23:36

You can, but the amount financed cannot exceed 80% of your appraised home value.

Posted by: Judy on 2010-07-24, 10:25:39

Stop. You are making an ARM mortgage. Did you know that interest rates are epected to double in the next 5 years !!!!! That increase could double the amount of your monthly interest payment. And you could easily lose your home. Please switch to a FIXED rate - No varaibles, arms, options, 5/ 5's, or 5/ 1 - don't let banks scam you anymore. /

Posted by: class510 on 2010-07-24, 10:34:12

If this is a fixed loan for the house, yes it would be a good idea.