Studies show that college graduates are more likely to hold a job and earn more money than individuals who do not have a bachelor’s degree. According to the U.S. Bureau of Labor Statistics, data suggested that employees who hold at least a bachelor’s degree earned over $932 median in weekly earnings. That’s why many parents want to provide their children with any advantage possible, i.e., a strong education that helps them gain independence and a secure future. The problem is that college fees in America have a reputation of being pricey, whether they are paid before, during, or after the student graduates. Therefore, both parents and students often explore the option of refinancing their existing mortgage to fund their education.
Please Note: By refinancing an existing loan, the total finance charges may be higher over the life of the loan.
Some of the top-ranking colleges in the U.S. include Columbia University, Harvard University, Massachusetts Institute of Technology, Princeton University, Stanford University, University of Chicago, University of Pennsylvania, Yale University, and more. It is important to note that tuition and fees vary from college to college. According to QS Quacquarelli Symonds, it can cost (per year) students over $12,000 to study at public two-year colleges, over $21,300 at public four-year colleges (in-state), nearly $37,500 at public four-year colleges (out of state), and nearly $49,000 at private non-profit four-year colleges. That’s not all as undergraduate students also have to factor in other living and transport expenses.
Some families live paycheck-to-paycheck and are unable to accumulate sufficient college savings. Due to confusing terms and co-signor requirements, individuals may struggle while attempting to apply for FAFSA (Free Application for Federal Student Aid) or other types of financial aid. Fortunately, homeowners can also consider paying for their college tuition by refinancing their existing mortgage. If you have equity in your home, it is possible to cash out and pay any outstanding tuition bills – cash-out refinance. This option replaces one’s mortgage with a new larger mortgage and the borrower takes the difference in cash. Depending on how much cash a person takes out and with interest rates currently at historically low rates, the difference in one’s monthly payment may be more manageable than an existing student loan debt.
Individuals with equity in their homes can get a lump sum to pay for their tuition and college expenses. If you or a loved one does not qualify for the amount of aid needed to cover all education-related expenses, including accommodation, books, and other necessities, you can access funds by refinancing your current mortgage loan. In addition to bolstering any school expenses, a cash-out refinance offers interest rates that may be significantly lower than other education loan options. What’s more, it may be tax deductible. Please consult with your accountant or tax attorney for advice.
Stockton Mortgage is recognized as a full-service, independent mortgage bank and an approved Ginnie Mae issuer, as well as a Fannie Mae and Freddie Mac seller/service. Headquartered in Kentucky, we serve a diverse clientele in 17 states, including Georgia, Indiana, Michigan, Ohio, and Tennessee. Enjoy peace of mind knowing that we hire professional underwriters and our company funds and closes all of our loans in-house. Our experienced mortgage bankers will help you take out cash via mortgage refinancing to fund your educational pursuits.
If you are a homeowner who wants to refinance his/her mortgage to pay for college and education, feel free to contact us for more information today. You may call one of our mortgage bankers at 888-914-2276.