Are you weighed down by college debt? If you’re a graduate or parent with several student loans hanging over your head, Newrez has a product that may provide a simpler way for you to pay them off. Pull cash from your home’s equity and check your student debt off your to-do list.†
Student Loan Cash-Out Refinance: How Does It Work?
A cash-out refinance allows homeowners to pull cash from the equity they’ve built up in their home. Oftentimes, homeowners use a cash-out refinance to fund a home renovation or consolidate credit card debt. However, our student loan cash-out program offers added perks.
Benefits of a Student Loan Cash-Out Refinance:
- Reduced Fees: Qualified borrowers may get a waiver of fees that would otherwise apply to a general cash-out refinance.
- Smooth Loan Payoff: Proceeds are paid directly to your student loan servicer, making your school loan payoff even easier.
- Consolidate Debt: This product enables you to compile multiple student loans into one payment, simplifying debt management.
- Potential Lower Interest Rate: Certain common student loans, such as unsubsidized federal loans, carry average interest rates upwards of 8%.1 By consolidating student loans into a cash-out refinance, you may be able to save money on interest.
Important Things to Know
A student loan cash-out refinance could be a great tool for anyone looking to bundle student loans into an easier way to pay—and perhaps even save on interest. However, there are some items you’ll want to be aware of:
- Paid in Full: This product requires that any student loan tied to it be paid in full. Partial payments are not allowed.
- Borrower Obligation: At least one borrower obligated on the subject property must also be obligated on the student loan being paid off.
- Refinance Requirements: In order to qualify for the student loan cash-out refinance, you must be able to meet typical refinance requirements.
- Not Just for Student Loans: While at least one student loan has to be paid off with the proceeds from this product, you may also be able to use it to pay off an existing first mortgage.
Knock Out Your Student Loans with Your Equity
Whether you’re the graduate or the parent of a graduate, you know how much work went into earning that degree—but no one wants to lug around a bunch of college debt. Newrez is here to provide a tool to help you make student loan repayment easier.
Want to find out if you qualify for a student loan cash-out refinance? Our loan experts are ready to answer all your questions. Reach out today.
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