homestarmy
Diamond Member
A while back I put in a paper that said I was interested in receiving student loans, but then received paperwork that told me there was an upfront percentage charge, the same way that there is a charge when you do a cash advance on a credit card. I don't remember the percentage. I am currently a graduate student BTW.
A bit later I asked about them in my College's financial aid office, and one girl told me that there was a special with one company that wasn't charging an upfront fee, but she couldn't tell me which. (I'm sure different companies do this now and then, no?). I probably should have bitch slapped her and made her tell me, but I wasn't that interested at the time.
Anyhow, my mortgage is FHA, so I have to wait 5 years and have 20% paid off, then I can get rid of my mortgage insurance. With normal payments, it will be a lot longer than the five years.
So I figure I can take out 15-20k in student loans, put them right into my mortgage now (though I won't hit the five year mark till 2008) and until I graduate, I will save 5.25% interest on that much money, in the form of paying off more principal (making the same payments). I will also save roughly $50 per month on Mortgage insurance, which can then go into the Student Loan payment.
Even after I graduate, I will be paying more per month (mortgage payment plus student loan payment), but the student loan should be at a lower interest rate than my mortage, 5.25%.
Is there any reason not to do this? How much will payments be on a 15-20k student loan? I should be making enough now to pay my mortgage and that loan without a problem, my new job gives me about $30k, and I was making my mortgage when I made around $23 (though it kinda sucked).
My mortgage is 30 year on about $120k btw.
Also, I thought we had a finance forum? I didn't see one. Maybe I'm thinking of FW...
A bit later I asked about them in my College's financial aid office, and one girl told me that there was a special with one company that wasn't charging an upfront fee, but she couldn't tell me which. (I'm sure different companies do this now and then, no?). I probably should have bitch slapped her and made her tell me, but I wasn't that interested at the time.
Anyhow, my mortgage is FHA, so I have to wait 5 years and have 20% paid off, then I can get rid of my mortgage insurance. With normal payments, it will be a lot longer than the five years.
So I figure I can take out 15-20k in student loans, put them right into my mortgage now (though I won't hit the five year mark till 2008) and until I graduate, I will save 5.25% interest on that much money, in the form of paying off more principal (making the same payments). I will also save roughly $50 per month on Mortgage insurance, which can then go into the Student Loan payment.
Even after I graduate, I will be paying more per month (mortgage payment plus student loan payment), but the student loan should be at a lower interest rate than my mortage, 5.25%.
Is there any reason not to do this? How much will payments be on a 15-20k student loan? I should be making enough now to pay my mortgage and that loan without a problem, my new job gives me about $30k, and I was making my mortgage when I made around $23 (though it kinda sucked).
My mortgage is 30 year on about $120k btw.
Also, I thought we had a finance forum? I didn't see one. Maybe I'm thinking of FW...
