Just wanted to get other people’s opinion on whether it’s a good idea to get rid of old student loan debt at a higher rate (6%) using a home equity loan/line or jumbo mortgage with rates being so low now. A quick check yield rates of 3.75 for a variable line and 3.99 – 4.99 for home equity loans (5yr / 10yr loan). With the fed looking to keep rates so low for years to come, this sounds like a good way to save a bit of cash. Regular jumbo loans are (guessing) around 4.50 or so.
Student loan debt “used” to be considered good debt, not so much now with useless degrees and overpriced college expenses.
Both are usually tax deductible with the Home equity/mortgage deductible even more since the student loan interest write off phases out once your income goes above a certain point.
Also, student loans unlike many debts (like credit cards) are incredibly hard to discharge even in bankruptcy so it sounds like a good idea for that reason.
A downside I see is that student loan payments are more flexible in terms of repayment and you have a longer period to pay it back vs. home equity loans. Rates are also not variable compared to home equity lines. Compared to a regular mortgage, selling the home may result in lack of equity if you needed to move sooner.
I would think it could be a good idea depending upon whether your house appreciates and you plan on staying there, not selling in the near future. The rates seem like they could even go lower.
I would think it could be a good idea depending upon whether your house appreciates and you plan on staying there, not selling in the near future. The rates seem like they could even go lower.
I would think it could be a good idea depending upon whether your house appreciates and you plan on staying there, not selling in the near future. The rates seem like they could even go lower.
I would think it could be a good idea depending upon whether your house appreciates and you plan on staying there, not selling in the near future. The rates seem like they could even go lower.
I would think it could be a good idea depending upon whether your house appreciates and you plan on staying there, not selling in the near future. The rates seem like they could even go lower.
i would keep the student loan debt. it’s a big giant bubble just screaming for loan mods in the future. most of mine will be gone next year, but i have one last govt chunk im holding onto. i could pay it off but i like the interest rate and think it’s worth having it spread out over 20 years ina refinance. i think helocing it might seem prudent but would be a bad bet.
i would keep the student loan debt. it’s a big giant bubble just screaming for loan mods in the future. most of mine will be gone next year, but i have one last govt chunk im holding onto. i could pay it off but i like the interest rate and think it’s worth having it spread out over 20 years ina refinance. i think helocing it might seem prudent but would be a bad bet.
i would keep the student loan debt. it’s a big giant bubble just screaming for loan mods in the future. most of mine will be gone next year, but i have one last govt chunk im holding onto. i could pay it off but i like the interest rate and think it’s worth having it spread out over 20 years ina refinance. i think helocing it might seem prudent but would be a bad bet.
i would keep the student loan debt. it’s a big giant bubble just screaming for loan mods in the future. most of mine will be gone next year, but i have one last govt chunk im holding onto. i could pay it off but i like the interest rate and think it’s worth having it spread out over 20 years ina refinance. i think helocing it might seem prudent but would be a bad bet.
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