Just Approved: Refinance offers student loan relief
Mortgage broker: Liz Bayer, ProMortgage.
Property type: Single-family home in Elk Grove.
Appraised value: $400,000.
Loan amount: $278,000
Loan type: 30-year fixed
Rate: 4.875 percent.
APR: 5.098 percent.
Backstory: A San Francisco Chronicle reader reached out to me to refinance her home with the goal of leveraging the equity for enough cash out to pay off all of her student loans, which totaled more than $80,000.
The great news is that, for conventional loans, the rate pricing is not considered “cash out” when the “cash out proceeds” are being used solely to pay off student loans. Since the money my client took out was used solely to pay off her student loans, the loan did not get priced as cash out refinance.