Is It Better to have Student Loans or a Mortgage?
Asked by HoustonJustinMy wife and I owe over $150,000 in student debt with interest rates around 9-11% on each loan. Is it better to just refinance our house and pay it all off, for a lower monthly payment and interest rate? To further clarify, our house is appraised at $250,000. We came into an inheritance and paid it off so we have no mortgage payment currently. Since we had to relocate to a new state, we are both unemployed and these payments are taking a toll on us. I'm sure we can get a rate on the home loan under what the school loans are charging us, and this way we can raise our credit score with a mortgage payment and have greater tax deductions? What do you guys think?
Favorite Answer
Answered by SchrodingersTigress
If you already have a home mortgage definitely refinance and pay off your high interest student loans. A mortgage looks much better on a credit report than old high debt student loans. However, if you don't already have a home mortgage I would never get one for that reason. Any time you mortgage your home you are open to lose it if anything happens.
If you already have a home mortgage definitely refinance and pay off your high interest student loans. A mortgage looks much better on a credit report than old high debt student loans. However, if you don't already have a home mortgage I would never get one for that reason. Any time you mortgage your home you are open to lose it if anything happens.
