Exp Realty LLC

Pay Off Debt to Afford a Mortgage

by Krystal Faticoni 07/07/2019

The cost to attend university continues to rise, putting pressure on students to afford an education. While some universities assist their students, many raise their prices to contend with operating costs. As a result, students leave school with mounds of debt that impede their quality of life. Paying off student loans starts by laying the appropriate groundwork, which gives you the best chance at success. 

Where to Start

Begin by identifying the type of student loans you have. Most often, you have either private or government student loans. The difference between them dictates the various options available to eliminate your debt. Now that you've identified your student loan type start with the government student loan. 

Government Loans

Government loans offer a variety of payment options based on factors such as your income and ability to pay. To more effectively make your student loan payments, request the payment plan that fits your financial situation. When you do receive extra money—like that birthday gift from Great-Aunt Daisy—apply it to your principal balance. You'll speed up the loan elimination process. By using the right payment plan, you balance your debt elimination with financial well being.

Private Loans

The payment plans for private student loans are difficult to adjust. One method to consider is refinancing to a lower interest rate. By refinancing your loan, you may lower your monthly payments. If you continue making more substantial payments on your refinanced note, you'll eliminate the principal balance at a faster rate. 

If you find yourself looking to refinance, shop around. Several companies specialize in student loan refinancing. By lowering your interest rate, you save money and can use that extra money toward principal payments, ultimately eliminating your student loans faster.

Finally, once you set a repayment plan, increase your principal payments through a second job or side-gig. Lyft, eBay, Instacart, and other flexible part-time options make increasing your outside income possible. Eliminating student loan debt is difficult, but certainly possible. With minor tweaks and adjustments, you will find the right path for you. 

Once you clear your student debt, you will have extra income for items such as saving for a down payment on a home. Purchasing a home is arguably the most significant asset for most people. By eliminating student debt, you can focus on home buying. To see if you qualify for a mortgage despite your school debt, reach out to a mortgage broker or loan officer.

About the Author
Author

Krystal Faticoni

Full Time Realtor® servicing Mecklenburg, Cabarrus, Union, Gaston, Iredell and York counties. I have 10+ years experience in sales and customer service. She received many awards since breaking into the business. One of them that I'm most proud of is the Rising Stars of Real Estate I received shortly after entering the business. 

I'm confident with my work ethic, determination, negotiating skills and overall customer service, I can assist anyone with their real estate needs. First time home buyers and those looking to relocate, look no further. I stay side by side with my clients to assure they not only find exactly what they are looking for, negotiate the best deal possible and educate them along the way. I believe that buying and selling a home for most is one of the biggest purchase you will make in your life. I want my clients to understand the process from start to finish. I also enjoy new construction and investors as well. Need to sell your home in order to purchase another one? Having been through that I know exactly how nerve wrecking that can be. Let my past experiences and expertise guide you through the process smoothly. 

I am a wife and a mother of 2. When I'm not selling Real Estate you can find me out on the soccer fields. Both my children play travel soccer and my husband coaches for Pfeiffer University. I was born and raised in central New Jersey. I later moved to the shore where we purchased our first home and started our family. We made the move to NC in 2015. Since being here we've totally fallen in love with all the things this beautiful state has to offer. I also spend my time volunteering for Cabarrus County Special Olympics, where I'm on the committee. I am also a part of the Cabarrus County Parent Advisory Council, PTA, leader of our neighborhood HOA Social Committee and 

I'm a volunteer for the Mecklenburg County schools as well. A Child's Place is a non profit organization in Charlotte that I also volunteer with. I agree with Audry Hepbrun, when she said; "As you grow older, you will discover that you have two hands - one for helping yourself, the other for helping others."

Licensed in North Carolina & South Carolina