I plan on buying a house or a condo in the next couple of weeks. Can I roll my student loans of $27,000 into a new mortgage loan to consolidate?
Depends on how much money you plan on putting down. You cannot have more than 100% of the value of the property outstanding, and most banks will require at least a 5% down payment (and more likely 10 to 20%) to close the loan. So, using the 5% as a minimum, on a $200,000 house, you could borrow no more than $190,000, meaning you would have to have at least $37,000 in cash plus closing costs to get the loan down to where you could roll the student loans in (in which case, you could just pay them off anyway).
The only other option would be to find a property selling well below market value, which would give you instant equity – say a $200,000 house selling for $150,000, which gives you teh equity leeway to do what you want.
Comments
no you cannot. the loan will be based on the purchase price only. Now if buying way under market value then you can refinance the loan in 1 year and then include the student loan but they should have the same about rate any way if they don’t get the student loans consolidated into 1 fixed note now as rates are good
References :
Depends on how much money you plan on putting down. You cannot have more than 100% of the value of the property outstanding, and most banks will require at least a 5% down payment (and more likely 10 to 20%) to close the loan. So, using the 5% as a minimum, on a $200,000 house, you could borrow no more than $190,000, meaning you would have to have at least $37,000 in cash plus closing costs to get the loan down to where you could roll the student loans in (in which case, you could just pay them off anyway).
The only other option would be to find a property selling well below market value, which would give you instant equity – say a $200,000 house selling for $150,000, which gives you teh equity leeway to do what you want.
References :