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