This is a YouTube video titled "🤔 Why are Student Loan Payments Required? 🤔" containing a monologue or explanation about how student loan payments are considered by lenders during forbearance and their impact on mortgage pre-approval amounts. The content is from November 28, 2021, and focuses on financial advice related to student loans and mortgage lending.
Student loans are in forbearance right now. But the government does understand payments are going to kick back into gear. So they make lenders still account for some sort of a payment. Now, they don't let lenders use income based repayments because they feel like there's a lot of contingencies with those. If they aren't met, the payment kicks back into full gear. So worst case scenario. Now here's what I see a lot of lenders do. A lot of lenders use 1%, which if somebody had a $50,000 student loan, let's say that's a $500 a month estimated payment. We can use a half percent. That's $250 a month frees up $250 more in a mortgage payment. That equates to $50,000 in difference on a pre approval amount.
