Question by Kat: Should I include my student loans in a home refinance?
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?
Answer by falsifiable
You can, but the amount financed cannot exceed 80% of your appraised home value.
Add your own answer in the comments!
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.
If this is a fixed loan for the house, yes it would be a good idea.