First Time Home Buyers and Student Loans: KNOW these FACTS!

First Time Home Buyers and Student Loans: KNOW these FACTS!

Brent Willis, CMPS

Published 4 months ago

The Financial Responsibility Act of 23 will Impact Homeownership

As we all agreed, we're facing a potentially challenging situation come September. Many of our clients have not made student loan payments in three years due to the pause on payments. Combining this with no financial planning, rising inflation, high credit card debt, and the prospect of a payment that hasn't been seen in 36 months, we could be looking at a significant impact on those directly or indirectly involved in the housing market.

To Calculate your new Student Loan Payment, click this link - https://www.myloansense.com/l/brent-willis
To set a time with me to chat about options, click this calendar link - https://calendly.com/brent-willis

______________________________

To the right, there are 3 presentations that walk you through the math around each solution for that scenario. The video presentation will walk you through it!

~ For our sellers, especially those who recently purchased at low-interest rates in the 2 or 3% range and have student loans, this situation might affect their ability to move on to their next home.

~ For our current approved buyers, this could impact their pre-qualification. Imagine adding $300 to $1,000 to their current debt-to-income ratio (DTI).

~ And let's not forget our new first-time buyers. They will also feel the impact on their qualification. We must act swiftly to help them avoid default and late payments when the pause lifts in September.


.....................................................
High-Level View Of Options You Can Use -

(These can be discussed with the LoanSense representative after you use the Student Loan Debt Restructure tool on this page).


⚡️Standard Repayment Plan

Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).

This is not an income-driven plan. It is not a good option for those seeking Public Service Loan Forgiveness (PSLF).


⚡️Graduated Repayment Plan

The graduated repayment plan starts with lower payments that increase every two years. Payments are made for up to 10 years (between 10 and 30 years for consolidation loans)

This is not an income-driven plan, which means you will not qualify for Public Service Loan Forgiveness or interest relief as you would on an income-driven repayment plan. Even more detail here.


⚡️Extended Repayment Plan

Payments may be fixed or graduated and will ensure your loans are paid off within 25 years. If your extended plan is graduated, then payments will rise over time. You will pay back significantly more interest than on a 10-year plan.

This is not an income-driven plan, which means you will not qualify for Public Service Loan Forgiveness or interest relief as you would an income-driven repayment plan. Even more detail here.


⚡️Revised Pay As You Earn Repayment Plan (REPAYE)

This is an income-driven plan.

Your monthly payments will be 10 percent of your discretionary income. Payments are recalculated annually based on your updated income and family size. Unlike PAYE, though, the monthly payment can exceed the 10-year standard plan payment.


⚡️Pay As You Earn Repayment Plan (PAYE)

This is an income-driven plan.

Your monthly payments will be 10 percent of discretionary income, but never more than you would have paid under the 10-year Standard Repayment Plan. Payments are recalculated annually and are based on your updated income and family size.


⚡️Income-Based Repayment Plan (IBR)

This is an income-driven plan.

Your monthly payments will be either 10 or 15 percent of discretionary income (depending on when you received your first loans), but never more than you would have paid under the 10-year Standard Repayment Plan. Payments are recalculated annually based on your updated income and family size.


⚡️Income-Contingent Repayment Plan (ICR)

This is an income-driven plan.

Your monthly payment will be the lesser of 20 percent of discretionary income or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income.
Payments are recalculated annually based on your updated income and family size.


⚡️Income-Sensitive Repayment Plan

This is an income-driven plan.

Your monthly payment is based on annual income, but your loan will be paid in full within 15 years.
Deferment

.............................


You are in deferment on your 6-month grace period. Interest accrues during this period. This means your balance will increase, and you’ll pay more over the life of your loan.

Any period of deferment will not count toward loan forgiveness. We recommend you enter into an income-driven repayment plan to lower your payment.
Forbearance

You are in forbearance, and interest accrues during this period. This means your balance will increase, and you’ll pay more over the life of your loan.

Any period of forbearance will not count toward loan forgiveness. We recommend you enter into an income-driven repayment plan to lower your payment.

To Calculate your new Student Loan Payment, click this link - https://www.myloansense.com/l/brent-willis
To set a time with me to chat about options, click this calendar link - https://calendly.com/brent-willis


Brent Willis, CMPS
NEO Home Loans
615-300-2067

Recent Reviews

"Working with Brent Willis and his team was incredibly easy! They walked me through every step, kept me up to date as the process moved forward, and most importantly, delivered the $$$ goods on time!"
– Nishikant T.

5.0

Gordonsville, TN
"I had a great experience. Was always kept in the loop and notified when documents were needed."
– Jacob S.

5.0

Review Verified
Navarre, FL
"Everyone had excellent communication. Brent stayed calm during an interesting experience (due to circumstances out of his control)! He gave good advice and kept us moving forward. He always had a plan B."
– Angela H.

5.0

Review Verified
Navarre, FL
"Great team, great communication!"
– Larry H.

5.0

Review Verified
Old Hickory, TN
"My wife and I were new to the housing market and loan process. The team at NEO made it a smooth and comfortable experience. My wife Chelsie and I in review are beyond grateful for our experience! NEO’s team was always available and responsive to our questions and needs. Zero complaints from the Kagay family! Thanks again!"
– Colin K.

5.0

Review Verified
Old Hickory, TN
"Communication and explaining the process was huge for us since it was our first time."
– Chelsie K.

5.0

Review Verified
Old Hickory, TN
"Our experience was great because your team was available for us and made this whole process smooth and easy."
– Chelsie K.

5.0

Review Verified
Lakewood, TN

4.2

Review Verified
Panama City Beach, FL

5.0

Review Verified
"I cannot put into words how easy it was to purchase my new house. There was constant communication, and I felt like Brent and his team had my back every step of the way. Everything was done online, so there was not driving back and forth, or lenghty meetings. Closing was the only real time event and it was so smoothe. I look forward to working with Brent and his team long after this sale to help keep my new house in perfect condition. Thanks so much, Brent and team!"
– Mark W.

5.0

Review Verified
Franklin, TN
"Less lengthy emails. More straight forward options and consequences. The why's don't matter as much to someone who is not in the profession."
– Thomas R.

3.0

Review Verified
Miramar Beach, FL
"My experience with NEO Home Loans was top-notch. We had a very short turnaround from property choice to closing and this team made it feel seamless. The communication throughput was proactive and timely. Brent took the time to walk me thru all of my questions thru each phase and the entire team was 5-Star. Our closing attorney (out of state), even made the comment that in here 25 years in the business, this was the best Mortgage company she has ever worked with."
– Kevin F.

5.0

Review Verified
"Brent was fantastic and made this a very simple transaction. I normally have to stay on top of the lenders in a transaction but not Brent. Ready to close 2 weeks early........that Never happens. Thank you Brent for being AWESOME."
– Renda F.

5.0

Hermitage, TN
"I never felt confident in my ability to buy a home until I met Brent Willis. He and his team gave us so much confidence & that enabled us to move forward in our home buying journey. I can absolutely say that Brent is THE person to have on your team. My husband and I are so grateful for his time in educating us and preparing us for this next season."
– Roxana Delaire B.

5.0

Review Verified
Columbia, TN
"Always being available and answering the phone to walk us through the process, to help us understand things, and to calm fears when it felt like we’d never get theough the underwriting process."
– Jon-michael William E.

5.0

Review Verified
Goodlettsville, TN
"Brent orchestrated several transactions that had to work out for the loan to happen. He was both patient and effective bringing together multiple parties to get the loan through."
– Wallace Danley R.

4.9

Review Verified
Nashville, TN
"Really appreciated the team's willingness to respond to any questions that we had during this process. The team also communicated very well to us during this time."
– Porter M.

4.9

Review Verified
"Brent and the team are great to work with! - Great communication all along the way."
– Dillon Bowman .

5.0

"Brent and the team are great to work with! - Great communication all along the way."
– Dillon Bowman .

5.0

Hendersonville, TN
"Clear and effective communication, - We had some hick-ups with the App but I am sure that'll be sorted out as they put miles on the platform."
– Dillon B.

5.0

Review Verified
Nashville, TN
"We are so incredibly appreciative of how hard the team worked in order to close our loan fast… We never expected to be moving and to have this team support mental a lot"
– Kalee Willingham B.

5.0

Review Verified
Nashville, TN
"Everyone involved in my process was immediately responsive and pleasant no matter what was going on. The speedy approval to close in 10 days was incredible and accomplished by consistent pressing through of the whole team."
– Joanne M W.

5.0

Review Verified
Franklin, TN
"Brent and his team were responsive, supportive, and timely throughout our whole experience."
– Angela P.

5.0

Review Verified
Franklin, TN
"Communication! Brent and Linda were always available to answer any and all questions, and explain in detail items that came up. Thank you to the team at NEO for the loan approval process. Brent, you and Linda have been a godsend. kge"
– Katherine Garner E.

5.0

Review Verified
Franklin, TN
"Brent and his team kept in contact and left no stone unturned. They answered questions swiftly and took all of the worry out of the process. I can not recommend them enough."
– Adam S.

5.0

Review Verified
"Brent is fantastic and will bend over backwards to make sure you are taken care of. I recommend him to anyone I can."
– Brett M.

5.0

Watertown, TN
"Linda and Brent are an amazing team helping with the information flow and being proactive with the deliverables. Great team"
– James L.

4.7

Review Verified
Nashville, TN
"Very smooth and easy process compared to other mortgage lenders I've dealt with"
– Cyrus K.

5.0

Review Verified
"Working with Brent Willis and his team was incredibly easy! They walked me through every step, kept me up to date as the process moved forward, and most importantly, delivered the $$$ goods on time! What more could you ask for? Jim B"
– Jim B.

5.0

5.0

5.0

"Working in the real estate business myself, I interact with dozens of lenders every month. In my experience, the best lenders are the ones who proactively communicate with their clients and the realty teams serving them. After all, communication fosters action, and keeping things moving forward is integral to a smooth closing. Brent Willis is one of those lenders. With Brent and his team, I never have to guess where we are in the financing process. I already know, because they proactively communicate every step of the way. This not only provides peace of mind, but also frees up my time because I don't have to chase anyone down for an update. Brent also does something not many lenders do anymore: he will take the time to educate clients and Realtors on the specifics of the home ownership process. Not just during the contract-to-close phase, but guidance and information for after the sale concludes. This puts him in rare company, and easy to recommend."
– Martin K.

5.0

"My team loves working with Brent and his team. We never have to ask for updates and they go over and above with communication and not only meeting expectations but exceeding them."
– Shanda K.

5.0

"More then 5 stars!!! For someone buying a house for the first time and not understanding anything. Y’all answered all my questions, very professional, all super friendly, made us feel comfortable, and everyone envolved was super helpful! Thank y’all, my babies are so excited to have a house to call home!!"
– Ashley H.

5.0

Student Loan Calculator / Debt Restructure Tool

Brent Willis - Student Loan Debt Restructure Calculator

NEO Home Loans - Branch Manager

1860084

Student Loans: Impact & Plan For First Time Home Buyers

Student Loans: Impact & Plan For First Time Home Buyers

Testimony on the Value of Creative Financing

What makes us different from any other Bank and Mortgage Co? Click Here

What makes us different from any other Bank and Mortgage Co? Click Here

Page 1 of 1

Spring / Summer 2023 Buyer Guide w/ Market Data

Spring / Summer 2023 Buyer Guide w/ Market Data

Page 1 of 1

Refer a Friend - Know Someone who needs our Advice and Guidance? I'd love to meet them!

Refer a Friend

Send

Email

Refer via your default email application

Messenger

Refer via Messenger
Requires Mobile App

SMS

Refer via your default SMS application

Telegram

Refer via Telegam

WhatsApp

Refer via WhatsApp

Share

Facebook

Refer via Facebook

LinkedIn

Refer via LinkedIn

Twitter

Refer via Twitter

Additional Resources

2024 New Loan Limits – Video Examples On How They Could Impact You!

Published 1 week ago

Unlocking Homeownership: The New 5% Down Payment from Fannie Mae on Multi-Family

Published 1 week ago

The NEO Experience. It’s what separates us from ALL other Bank and Mortgage Companies Nationally. Check it out!

Published 2 weeks ago

How To Counter Low Ball Offers

Published 1 month ago

The Commission Conversation; Adding Value To Buyers!

Published 2 months ago

Why Waiting for Interest Rates to Come Down is a Bad idea… Here is a Proven Strategy!

Published 2 months ago

NEO Home Loans

Company NMLS# 150953

205 Powell Place, Ste 228
Brentwood, Tennessee 37027

Copyright © 2023 NEO Powered by Luminate Home Loans, Inc. | NMLS #150953 |For licensing information, go to:www.nmlsconsumeraccess.org | http://www.goluminate.com | Please review our Disclosures & Licensing information. | Luminate Home Loans, Inc. is a wholly-owned subsidiary of Luminate Bank. Equal Housing Lender. For further information about Luminate Home Loans, Inc., please visit our website at http://www.goluminate.com. Luminate Home Loans, Inc. NMLS#150953. Corporate Headquarters2523 Wayzata Blvd. S. Suite 200, Minneapolis, MN 55405. For licensing information, go to: http://www.nmlsconsumeraccess.org. This advertisement does not constitute a loan approval or loan commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval. Other terms and conditions apply. Do Not Sell My Personal Information | Sitemap | Privacy Policy | Equal Housing Lender LO Search | Powered by lenderd.com

© 2023 The Lending Marketing Platform. This is not a Government website. The Lending Marketing Platform and its products are not endorsed by the Department of Veterans Affairs or the US Department of Housing and Urban Development. The content on this site is for educational purposes only and is not an advertisement for a product or an offer to lend. If you have questions about the loan officers featured within our lender directory, please visit the Nationwide Mortgage Licensing System & Directory for more information and to check their licensing status at https://www.nmlsconsumeraccess.org