Fannie Mae, the largest backer of mortgage credit in the US, has launched a new programme allowing homeowners to refinance their mortgages to pay off their outstanding student loan debt. The programme, which will be available for borrowers who have taken out loans between 2006 and 2008, is being rolled out by Freddie Mac, Fannie's parent company. Fannie Mae, the largest backer of mortgage credit in the country, has issued new guidelines allowing home owners to refinance their mortgages to pay off their student loan debt. However, people should be very cautious, warns Rohit Chopra of Consumer Federation of America, as by doing this homeowners give up some significant protections. Chopra says only higher-income borrowers with stable jobs should consider it as, otherwise, you could be putting your home at risk.
Fannie Mae, the largest backer of mortgage credit in the US, has launched a new programme allowing homeowners to refinance their mortgages to pay off their outstanding student loan debt. The programme, which will be available for borrowers who have taken out loans between 2006 and 2008, is being rolled out by Freddie Mac, Fannie's parent company. However, people should be very cautious, warns Rohit Chopra of Consumer Federation of America, as by doing this homeowners give up some significant protections. Chopra says only higher-income borrowers with stable jobs should consider it as, otherwise, you could be putting your home at risk.