Student Loan Debt Solution Found via Fannie Mae's "Student Loan Cash-Out Refinance"

Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI


Student Loan Debt Solution Found via 
Fannie Mae's "Student Loan Cash-Out Refinance"
Mounting Student Loan debt has become a huge concern ...
This is true not only for individuals carrying student loan, but for GSE's (Government Sponsored Enterprises) like Fannie Mae that oversees and ensure mortgage liquidity and guidelines to Banks, Lenders, and Mortgage Providers.   

In a previous post, I noted that Fannie Mae had revised guidelines as they pertain to treatment of Student Loan Debt when applying for loan.  Those changes were favorable for Home Buyers carrying student loan debt, as they allowed Mortgage Underwriters some flexibility in examining and allocating for student loans. 

This new more relaxed view removed some financing obstacles and made it easier for Mortgage Lenders to reach mortgage approval for Borrowers.  It opened the door for more potential Borrowers with Student Loan Debt to qualify for a Mortgage and buy homes.  A very welcomed outcome.

Now, adding to that earlier positive change, another new financing option offers hope to those that hold student loans. It comes in the form of financing called the "Student Loan Cash-Out Refinance Option".  The refinance option is backed by Fannie Mae and other wholesale lenders.  

A cash-out refinance option has long been an option available for homeowners with home equity.  Those homeowners could use the refinance to pay off debts of any kind.  
But with this new refinance option, when paying off Student Loan debt, certain costs normally charged to a borrower are "forgiven" or "eliminated".  

In turn, these savings result in either a:

  • Lower interest rate offering  
       or ...
  • Additional "cash out" at Closing  

It truly can be a real benefit to Borrowers to finance in this manner.

As with any new program, there will be a learning curve felt by lenders, but for current homeowners with sufficient equity looking to reduce or eliminate higher interest rate Student Loans and higher Student Loan payments ... there can be profound relief found via a "Student Loan Cash-Out Refinance"

Should you want more information, have questions regarding this new Student Loan Cash-Out Refinance (or other mortgage options), or your eligibility for putting this new refinance option to work for your benefit, please contact me.  I'll be happy to answer all your questions and assist you moving forward.
* Looking to find what possibilities exist for you?  
Are you hoping to Buy, Refinance or purchase an Investment Property New LenoxWill County, or elsewhere in the Chicagoland area? 

Contact me!  I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
nmls #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656


Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 


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Re-Blogged 6 times:

Re-Blogged By Re-Blogged At
  1. Fred Griffin, on leave of absence from ActiveRain 12/12/2018 03:58 PM
  2. Sally K. & David L. Hanson 12/13/2018 03:10 AM
  3. Debra Leisek 12/13/2018 10:15 PM
  4. Gita Bantwal 12/18/2018 09:54 AM
  5. Ginger Harper 12/14/2018 09:12 AM
  6. Gabe Sanders 12/26/2018 09:00 PM
Home Buying
Illinois Will County New Lenox
Chicago Area Real Estate BUZZ!
Consumer Mortgage Tips
student loans
fannie mae
refi options
homebuying advice
homebuying options
student loan solutions
student loan cashout refinance
refinance savings
paying off student debt

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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

Sounds like this may help those with high student loan payments -They may have other options

Dec 12, 2018 02:10 PM #1
Francine Viola
Coldwell Banker Evergreen Olympic Realty, Olympia WA - Olympia, WA
REALTOR®, In Tune with your Real Estate Needs

Thanks for sharing this student loan cash-out refi option.  I have several clients who should know about this!

Dec 12, 2018 03:16 PM #2
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

BIG NEWS Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi   I think I feel a reblog coming on !

Dec 13, 2018 03:08 AM #3
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the information, Gene.  I wasn't aware of this option and need to tell some folks about it.

Dec 13, 2018 05:06 AM #4
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gene this is valuable information.  Students graduation these days are start off their new life with a huge amount of debt.  Anything that can be done to lighten the load can be very significant for them.

Dec 13, 2018 04:35 PM #5
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Great information, Gene. Another one for "the collection." Have a great holiday.

Dec 13, 2018 06:06 PM #6
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

This will be a great thing for may people! Thank you so much for sharing this information!!  I have a teacher to call...she was  denied a loan because of her Student loan.... maybe she can buy now! 

Dec 13, 2018 10:07 PM #7
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Gene this is good news for lots of people. The government should do something, they are the main cause of the problem. They made too easy toborrow, and raised maximum borrowing limits way to high!

Dec 14, 2018 01:07 AM #8
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Gene, this is all new information for me and I am sure others will appreciate your guidence through the student debt minefields.

Dec 14, 2018 09:56 AM #9
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I don't work traditional real estate but this is good news and hopefully we can keep going on more ways of relief.

Dec 14, 2018 01:39 PM #10
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi ,

I was so glad to see your post featured! Congratulations ..Thanks for sharing this student loan cash-out refi option.  I have several clients who should know about this and it could really help them out.

Dec 15, 2018 05:07 AM #11
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

Thanks your excellent and timely post. Its good to have some options for those with enough equity to  consolidate debt.

Dec 16, 2018 08:06 AM #12
Rhonda Burgess
Southern Living Realty Partners - Smyrna, TN
Moving to Nashville TN Real Estate Specialist

Hey Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi so does this make the old student loan debt dischargeable under bankruptcy? If the borrower did the cash-out refinance and turned the student loan debt into mortgage debt, they could then file a bankruptcy and discharge this debt correct? I ask because student loan debt is normally not dischargeable in a bankruptcy except under extreme circumstances.  Or is there some clause in the refi that would prevent this? Thanks.

Dec 17, 2018 09:34 PM #13
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

The more options the better for new buyers.  People need to feel like they can enter the market and start building wealth.  

Dec 18, 2018 12:01 PM #14
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi Thanks for excellent post and congratulations on Feature! 

Merry Christmas & Happy New Year

Dec 18, 2018 12:06 PM #15
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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