Student loans

Does changing repayment terms to longer increase amount qualified for on mortgage? Dh had 10 years and were down to 8.5. If we change it to 25 years for a much lower monthly payment (current it's 375 for 10 year, 25 year would be 210). Would that help us qualify for more? We would still make same payment just change the actual amount due.

Re: Student loans

I honestly don't know if it's going to make much of a difference.

I could be looking at this entirely incorrectly; however, this is what I'm seeing: By changing the loan, you are going to save just under $2000 per year. I don't really feel like that is enough to get approved for a higher mortgage.

Someone who makes 80K and someone who makes 82K are probably going to get approved for the same amount of loan (if all their other financial factors are identical).

Re: Student loans

I'm not 100% sure....ask your mortgage broker.

BUT we had to do something similar with my car payment. The mortgage co wanted us to refinance the car loan payment to more years, so it lowered the monthly due Amt. Meanwhile we were refinancing our mortgage, resulting in a lower monthly mortgage payment (& we only had a few more months of our car payment left).

It's crazy that they often care about how the numbers look on paper.

Student loans

If you decrease your monthly expenses you may qualify to borrow more money. The mortgage company will look at your income and monthly payments to determine your debt to credit ratio--this is used to determine how much money you can borrow.

Re: Student loans

I would not want to triple the lenght of my student loan debt- all that interest!

I don't see it making a big difference on a mortgage-