Call

(720) 501-8971

Email

[email protected]

Schedule a Call

calendly.com/teamshereen/homebuyerconsult

Application

prod.lendingpad.com/nexa/pos#/?loid=f4d5da54-65a8-472e-97ce-c4a1e923308a

Add To Contacts

Download vCard

  

Extended Repayment: Why Does It Cost More Money?

Hi,
I wanted to chat with you about something that needs to be clarified: extended student loan repayment plans. Understanding these plans can be crucial as you research and buy a home.
Let's break this down.
Extended repayment plans may seem like a good deal initially because they start with lower payments. But there's a catch - you pay more in the long run.
There are two main types of these plans:
⚡️Extended Graduated Plans: Your monthly payment increases every two years, and the repayment period extends beyond ten years.
⚡️Graduated Plans: You pay the same monthly amount, but the repayment period is over ten years.
These options result in lower payments than the standard 10-year plan, which everyone is automatically put on. But here's the thing: if your interest rate is over 5%, stretching out your loan with these extended plans is like turning your student loan into a long-term mortgage. You'll pay more over time; these plans don't forgive any interest.
According to the US Department of Education, nearly 2 million Americans are on these extended plans. If you're struggling to afford your payments, an income-driven plan, such as PAYE, REPAYE, or IBR, may be a better option. You can see which repayment plan is best for you on the recommendations tab with LoanSense.
The great thing about income-driven plans is that you can receive government interest subsidies and forgiveness over time. Yes, you'll need to file paperwork every year, but it's worth avoiding the thousands of extra dollars you might end up paying on an extended plan.
Remember, it's all about understanding your options and making informed decisions. Don't hesitate to ask if you have any questions.

Reviews

"Everyone we worked with just seemed very genuine,sweet, and nice to talk to. Everyone did a good job making things as simple and straight forward as possible. Buying your first house is always going to be extremely stressful but I appreciate all the help we got along the way."

rikkie jean h

"Shereen was very informative and helped us throughout our entire home buying process!"

christopher tanner c

"Everything"

alijandro b

"We really appreciated the friendliness and responsiveness. Ultimately, we were able to get to closing without a problem. However, there were times when we felt that the process was not entirely transparent and that communication wasn't always clear. For example, we received an initial loan estimate that did not lock our rate. I wish there had been better communication about when that rate would be locked, what would be the pros and cons of locking it at that time, etc. I felt in the dark about the process for a long time and had to seek answers myself. Even then, I was left feeling like I didn't understand why things had happened the way they did. Our final interest rate was higher than the original estimate and it felt like that was unnecessary."

heidi anahi v

"This was the easiest financing I have encountered. A lot of it had to do with Shereen's involvement through the entire process. In addition, I don't think there was phone call I placed to Shereen that she didn't return the call the same day. A real professional!!"

timothy ray a

"There were no issues at all with getting to the table."

barb p

"Great communication and fast turn around"

olivia s

"Wonderful communication, super professional and fun to work with. Shereen has the gift of listening, formulating a plan and executing through to closing. It’s a pleasure working together."

bill m

"Very responsive to our needs and great to work with."

graham peter b