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wayofthegun2011
New Poster
Cash: $ 0.45
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Joined: 30 Oct 2011
Location: Knoxville, TN
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| Student Loan Consolidation/Mortgage |
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Hi,
I'm a mid-twenty, young professional that graduated college a few years ago. I have a great job, with very good income. I also have a good credit score. 700-725
But I have a mountain in student loan debt. +$100k. I am able to make the payments, but they will continue to rise until I consolidate at a fixed rate.
I have the opportunity to purchase a house from a family member at a decent price. I feel as though it is better for me to buy right now as opposed to renting. I will have the ability to get roommates which will take help contribute a considerable sum to the monthly mortgage.
My question stems with the student loan consolidation. I tried consolidating about two years ago, and a cosigner was required. I did't want to put that burden on anyone, so I turned down the loan. I have a good feeling I will be approved solely on my own terms, but I'm not sure as to what I should do first. Should I buy the house first in the next few months, and then consolidate near the end of 2012? Or should I consolidate now and push the home purchase until the summer of 2012?
I've heard owning a house will help getting the consolidation on my own credit. But the additional debt might also hurt my chances of getting a consolidation loan as well.
Also, there are very few companies willing to do private student loan consolidations. Does anyone know any other opportunities? Private lenders? Someone willing to make a reliable return?
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Sun Oct 30, 2011 2:39 pm |
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oldguy
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Location: arizona
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What are your current rates & terms?
The private consolidation lenders have fairly high rates and shortterms - not very good sources of longterm capital. So your current loans may be competitive.
One method is to use home equity - but it will take a few yrs. Eg, you buy a $150k house, wait 8 or 10 yrs for $75k to $100k of appreciation & equity buildup, then refi the house and remove $100k of equity. That gives you a consolidated (house & SL) 30 yr loan that is easy to service (long term = low payments). The obvious risk is the real estate market - you will be hoping for high appreciation and low interest rates. You may get both - you'll probably get only one - and you may get skunked. So it depends on your desire for risk.
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Sun Oct 30, 2011 9:56 pm |
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wayofthegun2011
New Poster
Cash: $ 0.45
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Joined: 30 Oct 2011
Location: Knoxville, TN
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| Student Loan Consolidation/Mortgage |
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Thank you for the advice.
I guess my question pertains more to timing since I will be doing them both in the near term.
In other words, will obtaining a consolidation loan now hurt my chances of getting a mortgage 6-12 months for now? Or will getting the mortgage help my chances of obtaining a consolidation loan shortly thereafter?
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Sun Oct 30, 2011 11:11 pm |
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oldguy
Senior Member
Cash: $ 309.30
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Location: arizona
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'Yes' to both. Your question reduces to 'is a lender's risk of lending you >$200,000 higher than lending you $100,000?' Ie, your sequence is not as important as the total laon amount that your income stream has to support.
BTW, good that you didn't strap a cosigner with the risk - as you apparently know, the risk to the cosigner is far higher than most people understand - when kids beg gramma to cosign for a first car, they have little concept of what they are asking.
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Sun Oct 30, 2011 11:34 pm |
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maimai
New Member
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Joined: 17 May 2011
Location: Viet nam
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| Re: Student Loan Consolidation/Mortgage |
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quote:
Originally posted by wayofthegun2011
Thank you for the advice.
I guess my question pertains more to timing since I will be doing them both in the near term.
In other words, will obtaining a consolidation loan now hurt my chances of getting a mortgage 6-12 months for now? Or will getting the mortgage help my chances of obtaining a consolidation loan shortly thereafter?
It is true that there is hardly perfect. However, I think you should choose a way! Wish you success!
vietnam airlines
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Mon Oct 31, 2011 9:53 am |
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littleroc02us
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I see a storm a brewing in the future if you buy a house with 100k of student loans. I'm not sure why people think buying a house will change the fact that they owe so much money??? Owning a home is only a good idea when you have low risk, which means no debt. Consolidate those loans, rent and pay them off asap. Yes it may take some years, but build a budget a determine how long that will take by breaking it down.
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
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Mon Oct 31, 2011 1:30 pm |
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