Newly graduated students are often concerned that they will struggle to get a mortgage once they start their first graduate job due to the large sums owing to the Student Loans Company. Whilst the debt has to be declared as a financial obligation on any mortgage application, underwriters do not pay great attention to it. The reason for this is the low levels of repayment required by the Student Loans Company.
Student loans are not recorded on your credit file, so there is no record of your repayment history, good or bad! This may be a bad thing if you are apply for credit from a high street bank or mortgage company for the first time as they may have no credit information on which to base their decision on.
Graduates in certain disciplines, such as medicine and law, have an advantage in that a number of high street mortgage lenders will let them take out a mortgage with a 5% deposit, rather than the 10% deposit the lenders will ask for from other first time buyers.
In recent years there has been an increase in the number of student mortgages taken out. Normally they are arranged on the basis that […]
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Refinancing debt with an FHA loan to consolidate multiple bills into one new loan has become a popular option for homeowners. FHA, the Federal Housing Administration allows homeowners to borrow up to 95% of their home’s value for a cash out refinance. This cash out can be used to refinance debt the homeowner has including: credit cards, student loans, automobile loans, personal loans, and second mortgages or home equity lines of credit.
This refinancing option is especially beneficial to homeowners whose property has increased in market value since the home was purchased. A cash out refinance allows homeowners to refinance their existing mortgage by getting a new mortgage for more than they currently owe, the difference after paying closing costs and the new escrow account is the cash out. This allows homeowners to access the equity they have built up in their home. FHA does require the homeowner to have owned their current home for at least one year before obtaining a cash out refinance.
Taking consumer debt and converting it into a mortgage can be financially beneficial. Refinancing expensive credit card debt into a tax deductible, low rate mortgage can be a good thing as […]
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