A Student Loan Cash-Out Refinance. Trade The Student Debt For Equity.
Use the equity in your home to pay off student loans in one refinance, under a transaction type built for exactly that.*
A recognized transaction, not a workaround.
Fannie Mae names this one specifically. The proceeds pay the student debt directly rather than landing in your account.
- Proceeds must pay at least one student loan in full*
- The payoff goes directly to the servicer*
- Standard documentation: income, assets, and credit
- You must be on title before the application*
- A full appraisal is normally required
- Available on a primary residence*
Structured as a student loan cash out refinance*
Proceeds pay at least one student loan in full*
The debt is paid directly rather than handed to you
You must already be on title before the application*
A full appraisal is normally required
Standard documentation: income, assets, and credit
What is the Saxton Student Loan Cash-Out Refinance?
A refinance that pays student debt from home equity in one transaction
This replaces your mortgage with a larger one and uses the difference to pay off student loans. It is a transaction type Fannie Mae names and writes rules for, not a general cash out that you happen to spend on education debt.
Two things decide this one: how much equity sits in the property, and whether the student loan can be paid off in full rather than partly. The payoff goes straight to the servicer either way.
The distinction matters. Because the payoff goes directly to the student loan servicer, the transaction is treated on its own terms rather than as an ordinary cash out. The loan must be paid in full rather than partly reduced.*
Why choose the Saxton Student Loan Cash-Out Refinance?
Built for homeowners carrying education debt and equity at the same time.
One Payment Instead Of Two
The student balance disappears into the mortgage, which leaves one payment rather than two competing ones.
Paid In Full, Not Partly
The transaction requires at least one student loan to be paid off completely. A partial reduction does not qualify.*
Paid Direct
Proceeds go to the servicer rather than to you, which is what keeps it inside this transaction type.*
Think In Totals
Moving debt onto a mortgage lowers the monthly cost and can raise the lifetime cost. Ask for the total before you decide.
Federal Protections End
Paying a federal student loan off with a mortgage ends the protections that came with it. That is a real trade, and it should be a conscious one.
Equity Decides It
How much you can clear depends on the equity in the property rather than on the size of the student balance.*
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about paying student debt with home equity.
No, and that is the point. It is a named transaction type with its own rules, which is why it is treated differently from a general cash out you happen to spend on education debt.*
No. The proceeds go directly to the student loan servicer. That direct payoff is part of what defines the transaction.*
No. At least one student loan has to be paid off in full. A partial paydown does not qualify under this transaction type.*
That deserves a real conversation rather than a sales answer. Federal loans carry protections that a mortgage does not, and giving those up is a genuine trade. The monthly saving is easy to see; the trade is not.
It depends on the equity in your property rather than on what you owe in student debt. A licensed loan officer can work out the figure for your file.*
If they are a borrower on the loan, their debt is part of the picture. If they are not, it generally is not. It is worth confirming before you plan around it.
At least one has to be paid in full. Whether the others can be included depends on your equity and on the rules that apply to your file.*
Find out what you qualify for
If you are carrying education debt and equity at the same time, there is likely a Saxton Student Loan Cash-Out Refinance that fits. Get a fast, no obligation pre-qualification today.
Get Pre-Qualified*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Student loan cash-out refinancing is a defined transaction type with its own requirements, including that at least one student loan is paid in full and that proceeds are disbursed directly to the servicer. Paying off a federal student loan with mortgage financing ends the protections attached to that loan. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.