Avert Disaster: Don’t Let Student Loan Debt Ruin Your Retirement

When you hear “student loan debt,” more than likely you don’t think about seniors. But in fact, seniors have student loan debt to the tune of $204 billion, according to CNBC. That’s nearly 17% of the national student loan debt! But just how did they get there?

The short answer is: just like everyone else. Some hold their debt because they co-signed for loved ones – grandchildren, and the like – or because they were continuing their own education. Others have the misconception that student loan debt is forgiven after retirement but in actuality, it is not.

Student Loan Debt and Your Retirement
When it comes to student loan debt and your retirement, you’ll want to pay attention. That’s because the government can tap into your retirement fund as well as your social security benefits to make up for money owed.

Many of those making student loan payments well into older age don’t know that they have options, but they do. Here are two of the easiest ways to keep student loan payments out of the way of your retirement – especially if you feel you may be close to defaulting:

1. Refinance
Just because you have student loan debt doesn’t mean that you’re stuck. Refinancing your student loans allows you to lower your interest rate, and therefore, your monthly payment. It’s also a great way to pay off your student loans faster so you can get them out of the way, and enjoy your retirement debt free.

2. Consolidate
Consolidation is another great option if you are paying student loan payments to several lenders and would like to combine them into one. When you have multiple student loan payments, it can become overwhelming, but consolidation can help to simplify your payback strategy, and also help calm your nerves.

Whatever option you choose – whether it’s a refi or consolidation – you have to know where you stand credit-wise. Having a good credit score can make all of the difference in whether or not you can obtain a lower interest rate. If not, you can always take steps to improve your credit score, and then explore these options later. That way, you get the best rate possible, lower your student loan payments, and enjoy your retirement years.

Laurel Road Student Loan Refinance customers save $20k over the life of their loan on average. Find out what rate you could get by refinancing with Laurel Road here.

Fund your future. We can help.

Our customers are determined to make a difference. Laurel Road rewards that determination with financial solutions based on their priorities—and with savings that can help build a better future.

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  • Average savings of $20,000+1
  • No origination fees
  • No prepayment penalties
  • Economic hardship support*
  • Autopay discount*

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Reasons to Refinance a Mortgage Whether Rates Are Up or Down

Home is the place where family gathers, holidays are celebrated, and memories are made. Because of that, it takes a lot of time, energy, and money to locate the home that’s right for you and your family. So, once you’ve found that special place and your monthly mortgage payments are buzzing along, what reasons could you possibly have to refinance?

There are several reasons to refinance, many of which involve cashing-in on lower interest rates. However, what do you do when interest rates are on the rise? Here are some of the reasons why someone may choose to head down the road to mortgage refinance whether interest rates are low, or on the rise.

Lower the Interest Rate
Some people refinance their home to lower the interest rate. There are many economic factors that determine long and short-term rates and keeping tabs on them can help you decide if refinancing is right for you.

Shorten the Term and Build Equity
For some, paying down debt as quickly as possible is the main priority. And for those who have a mortgage, refinancing their home is one way to get it paid off faster. Instead of paying the standard 30-year mortgage homeowners can switch to a 15-year mortgage, get the home paid off, and build equity at a faster rate.

Change Loan Type
When purchasing a home, you can get an adjustable rate or a fixed rate. However, if you change your mind down the line – whether it’s because interest rates have changed or for personal reasons – you can choose an alternative option that fits your needs.

Cash-Out on Equity
For those who have homes that have appraised at a much higher value than they paid originally, or simply have built significant equity in their homes, borrowing cash against this equity is an attractive option. The amount you can cash-out will vary depending on several factors. For example, if your home is now worth $50K more than it was when you first got your mortgage, and you want to borrow $25k against your increased equity, you can. However, that $25K will be added to your refinanced mortgage, and your monthly payments will be adjusted accordingly.

Laurel Road offers cash-out mortgage refinancing with a streamlined online application process. Find out more about cashing-out on your mortgage with Laurel Road here

 

Sources:
https://www.investopedia.com/articles/pf/05/033005.asp
https://www.bankrate.com/finance/refinance/5-ways-reasons-to-refinance-mortgage-1.aspx
http://www.thetruthaboutmortgage.com/18-reasons-to-refinance-your-mortgage/
https://www.bankrate.com/finance/mortgages/removing-private-mortgage-insurance.aspx

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  • Streamlined online application puts you in control
  • Phone, chat, and email support when you need it
  • Cash-out refinancing options for existing mortgages
  • Secure, FDIC-insured and regulated bank

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The Cool Zones: Ten of the Hippest Zip Codes in...

The Cool Zones: Ten of the Hippest Zip Codes in the U.S.

“Cool hunters” looking for trendy addresses can add Indiana, upstate New York, Kentucky, and Michigan to their list of places to check out, according to a recent poll by Realtor.com and Yelp.

To compile their list, the firms looked at the most in-demand US housing markets and then looked for the highest concentration of what they call “hipster” businesses.

In addition to having plentiful dive bars, restaurants, barbers, vinyl record shops, and “visually appealing interiors,” the top postal zones also feature low unemployment, average selling periods of 30 days, and communities with a higher-than-average number of millennials (ages 25 to 34).

The hipster poll is important for buyers looking for youthful neighborhoods. Javier Vivas, who heads up economic research for Realtor.com explained, “when it comes to real estate – hipsters have a knack for getting it right. There’s clear evidence that ‘hipster’ popularity – in markets like Austin, Texas, – has led to mainstream interest and higher home prices over time,” he said in a statement.

Here are the country’s ten hippest zip codes:

1. Columbus Ohio’s Clinton Hill, 43202, median household income $44,007 a year
2. Seattle’s Capitol Hill 98122, median household income $65,367 a year
3. San Diego’s North Park 92104, median household income $55,130 a year
4. Fort Wayne, Indiana 46802, median household income $29,591 a year
5. Rochester, New York’s Highland Park 14620, median household income $43,550 a year
6. San Francisco’s The Haight 94117 median household income $111,817 a year
7. Long Beach, California 90814 average household income $60,751 a year
8. Louisville’s Schnitzelburg 40217 average household income $53,134 a year
9. Grand Rapids, Michigan 49506 average household income $63,308 year
10. Colorado Springs 80903 average household income $37,215 a year

When it comes to the “cool zones” people are looking for the comforts of a traditional neighborhood with the entertainment of a city – the best of both worlds. Moving to the “burbs” no longer has to spell doom for your social life when you’ve got hipster businesses in town. Next time you’re in the market to move, remember these cities, and you too can be a part of a “hip” zip code.

Laurel Road has technology that builds mortgages entirely online with a streamlined process built for you. Explore your options now.

 

Apply Today

The smart path to home ownership.

Get Started
  • Real rates, customized options – upfront
  • Streamlined online application puts you in control
  • Phone, chat, and email support when you need it
  • Cash-out refinancing options for existing mortgages
  • Secure, FDIC-insured and regulated bank

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Medical Residents: Our Focus from the Start

When Laurel Road kicked off student loan refinancing in 2013, our mission was clear: to help qualified graduates reduce the burden of student loan debt. But in 2015, we discovered an underserved subset of that market – physicians who were in residency and still had to pay back their student loans, regardless of their salary.

When a doctor enters a residency program, they are only making a fraction of what they will be post-residency. In fact, most residences and fellows make between $40-60K per year – hardly a reflection of the average doctor’s salary. This only makes student loan repayment more stressful as doctor’s try to balance high student loan payments with a moderate resident or fellowship salary.

This group doesn’t have many other payment options, either. They are often declined by financial institutions when attempting to refinance their student loans and lower their monthly payments. Our aim was to help doctors in this sticky situation by giving them payment options that other lenders wouldn’t, and to cap their monthly student loan payments at $100/month while in residency.

It’s Logical – Reward Hard Work

Advanced training and professional achievement deserve to be rewarded. It seems logical to us, and we couldn’t believe that no other lender truly appreciated the value of hard work before now. The math behind our idea is straightforward and may seem like a no-brainer – but for many, it wasn’t.

This is Our Specialty

Laurel Road was one of the first companies to offer a specific solution for doctors with qualifications based on their future earning potential, not what they’re making during their medical residency or fellowship program.

And because we’ve been working with physicians from the beginning, we know the kinds of loans that work for doctors at every stage of their journey. As an FDIC-insured bank – not just a third-party lender – we also know how to service these loans quickly and efficiently.

Lenders are Finally Taking Notice, and We’ve Expanded

Years later, other lenders are waking up to the unmet needs of medical students and residents and are offering to refinance their loans. The national student loan debt has nearly tripled in the last decade. A strong clue that the student loan debt crisis was, and continues to be, a real issue. Now, since the problem has worsened, it is an opportune time for lenders to engage with their customers, figure out what they need, and provide solutions that can help them. We continue to listen to our customers and now offer more than in-school student loan refinancing. We offer post-graduation and parent loan refinancing, too. Learn more about our product offerings here.

We may agree under certain circumstances to allow a borrower to make $100/month payments for a period of time immediately after loan disbursement if the borrower is employed full-time as an intern, resident, or similar postgraduate trainee at the time of loan disbursement. These payments may not be enough to cover all of the interest that accrues on the loan. Unpaid accrued interest will be added to your loan and monthly payments of principal and interest will begin when the post-graduate training program ends

 

Fund your future. We can help.

Our customers are determined to make a difference. Laurel Road rewards that determination with financial solutions based on their priorities—and with savings that can help build a better future.

Get Started
  • Average savings of $20,000+1
  • No origination fees
  • No prepayment penalties
  • Economic hardship support*
  • Autopay discount*

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