January 23, 2024

Is Student Loan Refinancing Right for You?

Estimated reading time: 3 minutes

While you spent years earning a degree, affording your student loan payments is the last thing you should worry about. Yet over 43 million Americans have outstanding debt from education costs.

After scheduled student loan payments resumed in October, the United States Department of Education reported that only 60% of borrowers have resumed payments, as of December, 2023.

To help alleviate the stress of these high interest loans, Homestead Funding has partnered with Campus Door to offer student loan refinancing!

What are the Benefits of Student Loan Refinancing?

Like a mortgage refinance, borrowers can utilize student loan refinancing to improve their financial health and offer peace of mind.

Save Money

In January, 2024, conducted a survey of 1,000 student loan borrowers. 94% of respondents who resumed student loan payments say it’s been financially challenging.

With Campus Door’s student loan refinancing, you may be able to convert your high-interest student loan into a lower-interest loan. An interest rate is the price you pay to borrow funds and is charged in addition to the principal loan amount. This lower interest rate ensures more of your payments go toward the principal amount of the loan.

Improve your Cash Flow’s survey reported that 58% of borrowers were spending less on leisure and entertainment to pay for their student loans. 52% also stated they have been taking on more work hours or acquired an additional job.

With a lower interest rate and payment, you’ll have more money in your pocket to pay for whatever you wish.

One Monthly Payment

Every student loan servicer has a different minimum payment and deadline, which can be confusing for borrowers who have more than one servicer. With a loan refinance, you’ll have one convenient monthly payment and more peace of mind.

Fast and Easy Process
A man chats with a woman in front of a laptop.

The loan refinancing process can be confusing, but it doesn’t have to be! When you apply for student loan refinancing, you’ll be able to close on your lower payment loan within as few as ten days. Additionally, you’ll have the full support from the Campus Door team to help you through the entire process!

Lower Your Debt-to-Income

Your debt-to-income ratio (DTI) is used by lenders to determine your ability to make monthly payments based on how much of your income goes toward debt, like car loans, credit cards, and even student loans.

By refinancing your student loans and making consistent payments, you’re informing financial institutions that you can take on other payments, such as a mortgage.

Can You Buy a Home If You Have Student Loans?

A husband, wife, and baby laughing outside their home.

Even if you have student loan debt, you may still be able to buy a house! You don’t need to be debt free to qualify for a mortgage. When you’re ready to find the perfect home financing for your situation, contact us! Our Loan Originators will walk you through the process, from pre-approval to closing.

Ready to get started?

Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.