When it comes time to get a home loan, lenders will look at all of your outstanding debt.  This includes those student loans that might take years to pay off.  They probably have low monthly payments, but they still are payments and cut away from your ability to pay just a bit.  If you are looking to get financed for a home loan, you should consider trying to speed up the pay off of your student loans. 

If you can not pay off the loans, then refinancing those student loans could help.  If you are not careful it could also hurt.  When you refinance student loans, look at getting the obvious, a lower interest rate.  That will help!

But also look at avoiding any types of financing charges that roll into your total loan amount, this just increases your debt.  If you are struggling to get financed because of ability to pay, then consider refinancing your student loans for a longer term and lower interest rate.  The combination of these two items should also provide you with a lower monthly payment requirement.  This will enable you just a little more financing leverage to get your home loan, but be prepared to continue paying the same amount if not more to pay off those student loans.  The faster you pay them off, the better you are no matter what!

Plus, student loan interest is only deductible for the first 5 years of the loan, so pay those loans off quickly after that 5 years is up!

This entry was posted on Sunday, January 13th, 2008 at 12:38 am and is filed under Student Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.