<p>We need to refinance our home mortgage. Should we wait until after our first round of college loans? Any impact on waiting until we have the new debt? Any impact on the loan process if we are in the middle of refinancing? I'm the kind of person that likes to do one thing at a time. I've been dragging my feet to refinance and now we are looking at the loan process coming up. So my question is really moot because we'll be doing the loan thing first. However, I'm curious if anyone is knowledgeable about how refinancing interacts with student loans. Any rate consequences if one thing is done before the other or simultaneously? This is NOT a question about should I use a home equity loan for some of our college expenses.</p>
<p>I’m not sure what your question is. If all you are doing is refinancing your current home mortgage, do it whenever you want to. It won’t have a speck of impact on your financial aid UNLESS you take out substantial money and it’s sitting in the bank when you file your financial aid application forms.</p>
<p>If you plan to take a Parent Plus Loan, really all they care about is that you have been very current on your debt payments.</p>
<p>If your student is taking STUDENT Direct loans (those are the ones in the student’s name only), your mortgage would have no impact whatsoever.</p>
<p>Do it when the interest rate is good. Paying a few more months of interest is better than paying even 0.125% more for the live of the loan.</p>
<p>New laws went in effect on January 10, 2014 regarding qualifying for a mortgage loan. In most cases, your debt to income ratio cannot exceed 43%. So, you should refinance now, while rates are good, and before more debt appears on your credit report. Any loans you take out - such as Parent Plus loans - will generally be factored into your debt to income ratio, even if they are deferred right now. Mortgage interest rates are the lowest that they have been in months - time to refinance!</p>