Paying off student loans with mortgage equity

You probably already know this but, Having 70k equity does not mean you can borrow that much, how much will your house appraise for? You can only borrow 80% of that

Have you looked at refinancing her student loans? Might be able to get that rate down a good bit.

I'm not a big fan of pulling cash out of a house to pay off other debts. I saw too many people do that before the housing crash and it caused them to be upside down during the cash. Lose a job and you got a real problem.

Unless you make too much income to get the full student loan deduction, you are better off keeping the mortgage seperated, and refinancing the student loans. Are both loans private? If so, just consolidate them together rather than going through the process and cost of taking equity from the house. In addition, but you'll likely be rolling the student loans into a term longer than refinancing separately, resulting in a higher overall finance charge in spite of possibly a slightly lower rate.

I literally did this myself yesterday, Sofi is incredible.

I had a lot of high interest loans like your wife, and they cut down the interest rate so far I was able to pay 100 less a month, while shaving 6 years of repayment time compared to remaining term.

Painless to apply and send documentation as well. I had a snag where they revised my rate up due to something they didn't like on the income verification, and was able to give them more info and they went below the original estimate.

Total time from application submission, to underwriter overlooking the application, to my submitting more info and the underwriter giving me final paperwork for e-signature? Less than 18 hours and I am in the "consideration period" giving me a chance to change my mind before disbursement.

No origination fee, and with your balance being similar to mine, you are also eligible for 100$ reward at signing that's deposited in your checking account to use as you wish, not just placed against the balance.

Keep in mind about the details of the rate. Unless it states otherwise, you can subtract 0.25% from the rate for setting up auto pay.

LINK

Will banks allow you to use debt to pay off debt? I know this isn't typically the case with credit cards.

So essentially if the house and my truck are in my name (I have no student loans) then I am going to be screwed once adding her student loans?

quote:

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becomes secured debt

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And forgiveable debt if you have a bankruptcy...

Student loans are not dischargeable until death in most cases.

Not screwed, but it will alter your DTI.

If God forbid she were to die or become disabled, you can get the student loans forgiven. Not so for the house. Also, if Bernie wins in 3.5 years, there might be some student loan programs that might not exist today.