Mortgages: Refinance or Purchase at 3.125% with $0 closing costs or even a credit towards closing with Box Home Loans

Quote from RUsum1 : Yeah but it would be nice to lock in a lower interest rate just in case I have to go back to minimum payments. It would be even sweeter if I could get approved for a higher loan amount so I could pay off student loans that are currently at a higher interest rate as well.

You are right, I just got excited on the thought that if I was in that situation I could be mortgage free Would definitely be nice to get a larger loan and get all the student loans paid off/dropped. I was considering this but I read online that it isn't always a wise choice. Th reason is because god forbid something happened where you couldn't pay your mortgage/student loans, a student loan can be put on hold and you can resume payment without too much issue. If you combined your total balance and put it on the mortgage and paid off all the school loan bills, you basically give up that ability to default on paying school loans if you couldn't pay them.

So the idea is, if you leave them separate and $hit hits the fan, you can stop paying your school loans and they wouldn't be taking your house. If you pay the loans and combine into your mortgage the same forgiveness rules don't apply anymore and you may loose it all.

Probably didn't explain that great, but you can probably get the idea i'm sharing from it. I don't know if this is good advice, but it made logical sense so I took it as good advice.

PS, I just refinanced with Provident less than a year ago. Process was smooth, they gave a closing credit, and the rate was great. So far they seem to be on top of all the payment notices/emails/updates, i'm happy so far.