Are your student loans looming large, making homeownership seem like a distant dream? If the thought of managing your student loan payments while saving for a house has you feeling overwhelmed, fear not! I’m Rebecca Foote, and I’m here to guide you through a three-step process that can help you restructure your student loans and pave the way to homeownership. Let’s dive right in.
Step 1: Create a Solid Plan
Whether you’re a first-time homebuyer or looking to upgrade to a larger home due to life changes, the first step is to create a plan. We understand that managing student loans alongside other debts can be challenging. That’s where our student loan calculator using Loan Sense comes into play.
Here’s what you’ll need to do:
- Calculate your total household income, which includes your partner’s income if you’re married.
- Gather information about your student loans, including the outstanding balance and interest rate (average rates are currently around 6-6.5%).
- Determine the number of people living in your household.
Using Loan Sense, input this data, and the calculator will generate savings options by restructuring your student loans. Best of all, this service is entirely free and takes just 30 seconds. It’s a simple yet essential first step to see how much you can save.
Step 2: Collaborate with Loan Sense
Once you’ve identified potential savings through Loan Sense, it’s time to get in touch with them. Discuss your goals and explore all available options for restructuring your student loans. Loan Sense professionals will guide you through the process, ensuring you select the best plan for your unique situation.
They’ll work directly with your loan servicer to transition your student loans to the new plan efficiently. Incredibly, this entire process can be completed in just 21 days, allowing you to regain control of your finances promptly.
The primary goal here is to lower your student loan payments. By freeing up money that would otherwise go towards student loans, you’ll have the ability to save for your future home. If you’re ready to buy now, these savings can be applied toward increasing your purchasing power.
Step 3: Complete a Loan Analysis with Us
No matter where you are in your homeownership journey, we’re here to help. Whether you’re a first-time buyer, looking to upgrade, or in need of debt restructuring, we’ll perform a comprehensive loan analysis to determine how much you can qualify for when it’s time to secure a mortgage.
Here’s a quick example:
Let’s say you initially got pre-approved for a $200,000 loan in August 2033. After restructuring your student loans, you could potentially cut your monthly student loan payments by $500. This reduction could increase your buying power from a $200,000 home to a $255,000 property. It’s astounding how such a seemingly small change can have a significant impact on your options.
But that’s not all; it’s crucial to avoid common mistakes others make:
- Many people miss out on income-based repayment programs, resulting in higher monthly payments.
- Approximately two-thirds of eligible individuals aren’t taking advantage of these programs.
- A staggering 71% of people fail to file the necessary paperwork for student loan forgiveness.
- Refinancing federal student loans into private loans is a risky move that can’t be undone.
- Beware of fraudulent schemes, as Google has banned advertising for student loans due to widespread scams.
Remember, we’re here to guide you through these pitfalls and ensure you make informed decisions about your financial future.
Additionally, for those who were behind or delinquent on their federal student loans prior to March 2020, the Fresh Start program offers a unique opportunity to rehabilitate your credit report.
Conclusion
Your journey to homeownership might seem daunting, especially when burdened with student loans. However, with the right guidance and a well-structured plan, it’s entirely possible to reduce your student loan payments and increase your buying power.
At the Rebecca Foote Mortgage Team, we’re committed to helping you achieve your homeownership goals while managing your student loan debt responsibly. Don’t let student loans hold you back from your dream home; reach out to us today, and let’s start working toward a brighter financial future.