Investor · Santa Rosa, CA · Member since 2016 · 1 post · 0 votes
In 2009 I purchased a single family in Vallejo, CA for $170,000 at 6%. I am currently renting the home out for $1900. I will be refinancing the loan- current comps $280,000 so LTV is not an issue as I owe less than $140k. Should I roll my outstanding $30k student loan into this? I'm currently paying 2.5% on it.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y
Extending the term on that $30k from whatever it is to 30 years will result in lower monthly payments on that $30k, but I'd rather keep that 2.5% interest rate myself, assuming I could comfortably afford it.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y
Extending the term on that $30k from whatever it is to 30 years will result in lower monthly payments on that $30k, but I'd rather keep that 2.5% interest rate myself, assuming I could comfortably afford it.
Residential Real Estate Agent · Livermore, CA · Member since 2010 · 140 posts · 28 votes
10y
Allowing the rents to pay off the education debt sounds like a great idea to me. I would make the effort to pay down the new loan as much as possible so that equity remains available for the next deal.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
10y
It depends. You will be paying a higher interest rate for the money if you do. You will be mixing real and your personal finance too for tax purposes. On the other hand if you have a large monthly payment on the student loan and that inhibits your ability to purchase other properties then it might make sense. It is about the numbers. I would not do it if it is just more convenient.
Real Estate Investor · Torrance, CA · Member since 2015 · 186 posts · 45 votes
10y
Amelia Moore
I would not touch the student loan debt for three reasons
1) It's at 2.5% and that is better than most mortgages
2) When you refi, you will have to take cash out and this will have a negative effect on the pricing of your loan. Cash outs take pricing hits.
3) It is not a good idea to use secured debt (mortgage) to pay off unsecured debt (student loans).
Hope this helps!
-David