Are there that many people with close to $50k in savings that also have $50k student loan debts at 6-7%? The example makes no sense to me. I guess if there are enough of them, this makes sense.
“Here’s how a typical BurkeyMortgage might work: Say the would-be homebuyer is looking at a $500,000 house but has $50,000 in outstanding student loans. He would roll the two amounts into a single mortgage. But he would have to make a down payment of close to $50,000.
That would leave a balance of $500,000, which would be almost equal to a 100% loan-to-value mortgage. The rate on the mortgage would be far less than that on the student loans, which currently run between 6% and 7%.”
I also love how this is a feature. I’m going to start calling all of my credit cards “Life Events” cards too. So much cooler.
“Another loan feature will allow borrowers to temporarily make lower monthly payments for three consecutive months for “life events” such as the birth of a child or a divorce. Of course, interest will continue to accrue during that period, and escrows will be recalculated once the borrower resumes making regular payments.”
