[QUOTE=Crackity Jones;4258632]OP: Just wanted to note- someone pointed out that some student loans (especially those that have been consolidated) carry a penalty for early repayment (which is an absolute joke, but that's a topic for another day), so I would confirm that you even have that as an option. And yes, sometimes you have to wait a min. time period before mortgage loan mods in general are even an option so check that too.
Also, my experience is that you might need to talk to a different bank than the one that has your current mortgage- they want to keep you as a customer, not talk to you about a refi... I called mine and started talking refi rates and they got all weirded out, as if it were a stupid idea... and then I talked to another bank and they were bending over backwards to help me out. Again, good luck.[/QUOTE]
Hey man. We're not gonna be taking mortgage advice from someone named "Crackity Jones". That's just craz....
[QUOTE=bitonti;4257869]make sure you can actually pay the student loan off early. Some of these lenders flat out won't let you... they want the interest every month. If you got a high interest student loan, chances are the interest rate isn't the only unfavorable term in that contract.[/QUOTE]
I can pay it off early if it's a one time payment.
[QUOTE=Banks81;4257847]Unfortunately the cosmetic renovation won't improve the value of the home from an appraisal standpoint. Appraisals look at the number of rooms, surrounding house values, etc. The "newness" of the interior does not come into play.
As for paying off the loan... sure! You can use refi money for whatever you want. As someone mentioned earlier, you will be charged for closing costs all over again (which may only be $3k and considered worth it) and some mortgages require that you wait at least 6 months before you can refi.[/QUOTE]
I know that generally cosmetic fixes don't add a ton of value to homes, but I'm in a bit of a different situation because the house was vacant for 3+ years and in complete disrepair.
[QUOTE=GMCJETS;4257868]How long do you plan on living in the house is the big question? Many who do this wind up with financial problems down the road. When its time to sell the house and you barely cover the 1st and 2nd mortgage and walk away with nothing or owe money. Be careful and be wise.[/QUOTE]
I'll be there for at least 5 years, probably 10.
[QUOTE=SAR I;4257598]Since you're in the midst of upgrading the home, take a look at Home Improvement loans at rates lower than the student loans. No one will question where the money went since the house is under major restoration.
When you get, say, $50K from the loan, immediately use $40 to pay off the student note and then use the remaining $10K to make the first year's payments on the Home Improvement Loan.
Just doing a quick check, I found a few banks offering 5-7% Home Improvement Loans. No re-fi, nothing damaging to the credit rating, justifiable due to the effort you're extending, etc.
This sounds like a great idea. The banks don't actually do before-after checkups?