Refinancing Your Home to Pay Off Student Loans: Key Benefits

Refinancing your home to pay off student loans offers a streamlined, cost-effective way to manage debt. Here’s why it’s a good idea:

  • One Monthly Payment: Combining student loans with your mortgage simplifies repayment, making budgeting easier.
  • Flexible Terms for Financial Relief: You can adjust the mortgage term to reduce monthly payments, freeing up cash for other priorities.
  • Potential Tax Savings: Mortgage interest may be tax-deductible, creating added financial benefits.

Watch the video below to hear David discuss how home refinancing can make tackling student debt simpler and more financially beneficial.

 
“Got 90 Seconds? Watch to Discover a Smarter Way to Pay Off Student Loans!”

FHA – Increase in Mortgage Insurance – No April Fools Joke!

April 1st of 2012 will not be a good April Fool’s joke – once again FHA has been looking at their overall solvency concerns and has deteremined they need to pass along the added costs to the new borrowers.

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount.  This increase applies regardless of the amortization term or LTV ratio.  FHA will continue to permit financing of this charge into the mortgage.  This change is effective for case numbers assigned on or after April 1, 2012.  Example: Loan Amount = 100,000.00 new Upfront Mortgage Insurance Premium is 1.75% = 1,750.00 being financed into new loan.

The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent.  This change is effective for case numbers assigned on or after April 1, 2012.  FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500.  This change is effective for case numbers assigned on or after June 1, 2012. UPDATE: Here is the HUD LINK

So for quick examples and here is the easiest equation. Take  your loan amount 100,000.00 time new Monthly Mortgage Insurance Cost of 1.25% = 1,250.00 then divide this number by 12 to give you the Monthly Mtg Ins Premium Cost = 104.17 per month vs. the old MI factor of 1.15% = 1,150.00 / 12 = 95.83 per month.

Now these are all numbers based on if you are only putting the 3.5% minimum investment down for this type of loan.

Taken together, these premium changes will enable FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) Fund, contributing more than $1 billion to the Fund, based on current volume projections through Fiscal Year 2013.

Should you have any questions please give contact me.

Mortgage Insurance, Not a Tax Deduction?

Mortgage-Insurance

Going forward Mortgage Insurance will no longer be able to be a line item deduction after 12/31/2011. As a Mortgage Insurance Company has reminded us: United Guaranty MI company. “MI tax deductibility is scheduled to lapse at midnight, December 31, 2011, now’s the time to expedite them to retain this benefit for your borrowers who qualify! MI tax deductibility will also lapse for FHA and VA loans, which were extended under the same law as private MI.”

As we found out last week, g-fees for new agency loans will be going up to pay for the two-month payroll tax cut.Under the “unintended consequences” banner analysts were quick to point out that, given the increase is scheduled for ten years, Fannie Mae and Freddie Mac are not going away any time soon unless the government comes up with the money elsewhere. F&F will not absorb this increase, nor will lenders; it will, of course, be passed on to borrowers. (The bill also will raise the annual insurance premium borrowers pay on FHA loans by one-tenth of a percent.) The increased g-fee, which makes it difficult for Congress to work on efforts to shut down Fannie and Freddie, based on current rates and a $200,000 loan, will cost the agency borrower about $11 per month. “These institutions, which have been so costly to Americans and are so necessary to the housing recovery, should not be the piggy bank for future arbitrary tax policy,” Dave Stevens (MBA) said. Due to their government ownership, investors still view their (and FHA/VA) MBS’s as safer investments than those offered by private firms. The law allows FHFA to phase in the fee over two years.
So, if you were lucky enough to close your home loan before 12/30/2011 Congratulations!

*As always seek a qualified CPA who can further assist you.* This is not to be construed as tax advice, informational purposes only!

We are hoping that the House of Representatives will continue to extend this tax credit to home buyers, as this is a benefit when you purchase a home and have less than 20% down payment. Make sure you contact your local Representative, Congressman, Senator, or local delgate. We need to extend this tax credit / deduction! As this will only help our real estate markets

Should you have any questions please contact me.


Howard J. Avatar
Incredible team! Jan and David were amazing in helping my wife and I with the purchase of our second home. They walked us through every step and made the entire process as smooth and stress-free as possible. We couldn’t be more grateful — highly recommend working with them!
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H. J. 4/15/2025
Justin H. Avatar
Working with David was fantastic!! I learned more than just what my home loan needed and was going to have to pay, I took away so much knowledge of how to make my money work for me. David very communicative along the way and answered every question even if it didn’t make sense at the moment he would break it down. If you are going to get a loan and care about the details, go to David Hailey! I will always refer anyone I know to David and his Team. Thanks David!!!!
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J. H. 4/04/2025
Angie L. Avatar
David was great to work with. He took extra time to explain loan structure and made sure the process was as simple as possible, providing tips and detailed instructions at every step. Highly recommend!
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A. L. 4/01/2025
Anna W. Avatar
David has been absolutely the most helpful human being through my and my family’s process of purchasing our first home. He was very relatable and easy to work with! His hard work alongside our realtor made our dream come true! I would give him 100 stars if I could. Highly recommend him
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A. W. 4/01/2025
Brianna C. Avatar
Truly amazing process, support, & communication, so grateful for the guidance in a process that seemed so scary in the beginning, to feeling confident as a first time home buyer! Thank you!
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B. C. 3/08/2025
Brianna C. Avatar
Truly amazing process, support, & communication, so grateful for the guidance in a process that seemed so scary in the beginning, to feeling confident as a first time home buyer! Thank you!
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B. C. 3/07/2025
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