Fannie Mae Introduces the Student Loan Cash-Out Refinance
Posted by: Mike Dulla, President, United Home Loans
Do you know someone who owns a home and has student loan debt? If so, they may benefit from a recent loan program feature rolled out by Fannie Mae.
The Student Loan Cash-Out Refi allows for the payoff of student loan debt through a home loan refinance transaction with a waiver of the typical rate increase that comes with most cash-out transactions. At least one student loan must be entirely paid off with proceeds of the transaction, and the funds must be sent directly to the student loan servicer from closing. Also, one of the mortgage loan borrowers must be obligated on the student loan which is being paid off.
Fannie Mae and Freddie Mac offer typical cash-out refinance transactions which may come in handy if you are consolidating other debts besides student loans. For a free analysis of all of your mortgage cash-out refinance options, reach out to us here or at 708.531.9060.