Your Lake of the Ozarks Mortgage Lender: Can I Get a Home Loan While Still Paying Off Student Debt?

Wednesday, April 25, 2018

Can I Get a Home Loan While Still Paying Off Student Debt?

One common misconception about getting a mortgage at the Lake of the Ozarks is that you can't have any student loan debt. While it's true that your debt-to-income ratio will affect your mortgage approval, having some debt is okay - actually it's even better than having none at all. Keep reading to learn about getting a mortgage while you're still paying off your student loans.

Student Loan Debt vs Credit Card Debt

The first thing to understand is that there's a big difference between student loan debt and credit card debt. Debt itself is essentially borrowing from your future self. However, with student loans, you are investing in a better future. You'll be more employable and earn more with a college degree. During the loan application, your Lake of the Ozarks mortgage lender will take a look at not only how much debt you have, but what type of debt it is. Having student debt is okay, but having a lot of credit card debt might raise some issues. Talk these things through with your lender, he or she is there to help!

Facts About Student Loan Debt

Below you will find 6 things you should know about student loan debt:

40% of the nation's total student loan debt is from graduate degree debt, not undergraduate
75% of borrowers age 20-30 have monthly student loan payments of $400 or less (50% of those borrowers have monthly payments of $203 or less)
$351 is the average monthly student loan debt payment, while $750 is the average extra monthly earnings for a college degree
15% is the approximate rate of return on a college degree
42% of student loan borrowers owe less than $10,000
Of homeowners age 31-35, 35% have a high school diploma, 39% have a bachelor's degree or higher and DID NOT borrow money for college and 50% have a bachelor's or higher and DID borrow for college.

As you can see, student loan debt isn't as big of a problem for most people as some may think it is. Many homeowners have purchased a home with student loan debt still on their plate, and chances are, so can you. You'll just want to make sure you have everything else in order.

If you're considering purchasing a home at the Lake of the Ozarks, give me a call at 573-746-7211 today. As your mortgage professional at the Lake of the Ozarks, I'm here to help you every step of the way. I'll discuss your options, offer competitive interest rates and back it up with the first-class service you deserve. Don't worry about your student loan debt just yet, come talk to me first!

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