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parent plus and refinancing roadblocks

Started by spar, October 16, 2017, 06:55:52 pm

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spar

Trying  to refinance but running into a road block with the  outstanding parent plus loan..We will just begin making payments next month of about 490.00.  Unfortunately to much according to our bank which we have current mortgage with, excellent credit and reasonable income.  Thought of forbearance to delay current payments to appease the bank for the 1pcnt amout till next year but they said they needed a  exact dollar amount after the 1 or 3 year forbearance.  Which  know one can seem to calculate it,,I've also thought of paying the accruing interest during that time so they monthly amount wouldn't go up..Doing an Icr would be a higher monthly amount so cant do that.  I believe we would qualify for Ibr but dont know exactly how to go about getting that  need help..I would like the refinance to go thru as that would ease up money to pay current monthly amount..  Help..

TheCollegeInvestor

Here are the options for a PLUS loan: https://thecollegeinvestor.com/17101/options-if-you-cant-afford-your-parent-plus-loans/

Refinancing the PLUS loan can be a great option if you can afford it.

As for refinancing your house, even if you're on IBR or ICR, most lenders won't accept that payment amount. They instead will calculate using your Standard 10-year repayment amount or 1% of the loan amount. Read about getting a mortgage with IBR (it's the same as ICR): https://thecollegeinvestor.com/5742/reader-question-applying-mortgage-income-based-repayment/