- The “Cost of Waiting to Buy” is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.
- Freddie Mac predicts that interest rates will increase to 4.8% by this time next year, while home prices are predicted to appreciate by 4.8% according to CoreLogic.
- Waiting until next year to buy could cost you thousands of dollars a year for the life of your mortgage!
Is It Possible To Buy A Home While Carrying A Student Loan?
First time home buyers face a great challenge breaking into the housing market. Rent keeps increasing and the availability of low-priced homes remains limited. Add several thousand dollars in student loan debt to the scarcity of low-value homes and budding buyers are likely to be convinced that they are not in a position to buy. Based on recent research, those who have completed a bachelor’s degree and intend to buy homes are modestly affected by their student loan repayment in their search. In this article, we take a look at tips from financial experts regarding how to acquire a mortgage while at the same time servicing a student loan. home buying process
What repayment strategy do you have to get rid of the student loan?
The strategy you choose to pay off your student loan plays a great role in determining whether you will be able to service the mortgage and the student loan concurrently. For instance, if you decide to use the snowball method to service your loan, you have the chance to take a forbearance period that allows you to take a break. Such a break may then be used to clear off other small loans aggressively. Once the forbearance period elapses you will have cleared the small debts you have allowing you to take on a mortgage and clear off your student loan with traction.
Another strategy of paying off your student loan would be to requester your loan administrator to give you a lower interest rate. A low-interest rate on your student loan means your monthly repayments will be reduced thus making it easier for you to take a low-interest mortgage. home buying process
What financial plan do you have to pay off the student loan?