Paying for college can be expensive. While the average student loan debt for college students is $39,351, it isn’t uncommon for students to leave school with $80,000 or more in education debt.

Tackling this amount of student loan debt can be difficult and time consuming. For example, if you had $80,000 in federal student loans made payments on the standard 10-year repayment plan with a 6.22% interest rate, you’d end up with a monthly payment of $897 and a total repayment cost of $107,643.

The good news is that there are multiple strategies that could help you pay off $80,000 in student loans more easily — and sometimes, more quickly as well.

Here are five ways to pay off $80,000 in student loans:

Refinance your student loansConsider using a cosigner when refinancingExplore income-driven repayment plansPursue loan forgiveness for federal student loansAdopt the debt avalanche or debt snowball method

1. Refinance your student loans

If you refinance your student loans, you’ll take out a new private loan to pay off your old loans, leaving you with just one loan and payment to manage. Depending on your credit, you might qualify for a lower interest rate through refinancing — this could save you hundreds or even thousands of dollars on interest as well as potentially help you pay off your loans faster.

Or you could opt to extend your repayment term to reduce your monthly payments and lessen the strain on your budget. Just keep in mind that by choosing a longer term, you’ll pay more in interest over time.

Keep in mind: While you can refinance both federal and private loans, refinancing federal student loans will cost you access to federal benefits and protections — such as income-driven repayment plans and student loan forgiveness programs.

If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in just two minutes.

LenderFixed rates from (APR)Variable rates from (APR)Loan terms (years)Loan amounts

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

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4.54%+N/A10, 15, 20$7,500 up to up to $200,000
(larger balances require special approval)Fixed APR:
4.54%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$7,500 up to $500,000Loan terms (years):
10, 15, 20Max. undergraduate loan balance:
$250,000 – $500,000Time to fund:
4 monthsRepayment options:
Immediate repayment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a resident of KentuckyCustomer service:
PhoneSoft credit check:
NoCosigner release:
After 36 monthsLoan servicer:
Kentucky Higher Education Student Loan CorporationMax. graduate loan balance:
$250,000 – $500,000Credible Review:
Advantage Education Loan reviewOffers Parent PLUS Refinancing :
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

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2.15%+
1.87%+5, 7, 10, 15, 20$10,000 up to $250,000
(depending on degree)Fixed APR:
2.15%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$10,000 to $400,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of TexasCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 – $149,000Max. Graduate Loan Balance:
$200,000 – $400,000Offers Parent PLUS Refinancing:
Does not disclose

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

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2.44%+1
2.24%+15, 7, 10, 15, 20$10,000 to $500,000
(depending on degree and loan type)Fixed APR:
2.44%+1Variable APR:
2.24%+1Min. credit score:
Does not discloseLoan amount:
$10,000 to $750,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
Autopay, loyaltyEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $150,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

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2.99%+2
2.94%+25, 7, 10, 12, 15, 20$5,000 to $300,000
(depending on degree type)Fixed APR:
2.99%+2Variable APR:
2.94%+2Min. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Loan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
Military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
All states except for MECustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
College Ave Servicing LLCMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $300,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.16%+
2.11%+5, 7, 10, 15, 20$5,000 to $500,000Fixed rate:
2.44%+1Variable rate:
2.24%+1Min. credit score:
680Loan amount:
$5,000 to $500,000Cosigner release:
YesLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Available in all states, except MS and NVCustomer service:
Email, phone, chatSoft credit check:
YesLoan servicer:
FirstMarkMax. undergraduate loan balance:
$500,000Max. graduate loan balance:
$500,000Offers Parent PLUS refinancing:
YesMin. income:
$65,000 (for 15- and 20-year products)

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
1.8%+5
1.8%+55, 10, 15, 20$1,000 to $250,000Fixed APR:
1.8%+5Variable APR:
1.8%+5Min. credit score:
700Loan amount:
$7,500 to $200,000Loan terms (years):
5, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and submit two personal referencesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Granite State Management & Resources (GSM&R)Max. Undergraduate Loan Balance:
$150,000 to $249,000Max. Graduate Loan Balance:
$150,000 to $199,000Offers Parent PLUS Refinancing :
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.47%+3
2.39%+35, 7, 10, 12, 15, 20Minimum of $15,000Fixed APR:
2.47%+3Variable APR:
2.39%+3Min. credit score:
680Loan amount:
No maximumLoan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
ForbearanceFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved schoolCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
MohelaMax. Undergraduate Loan Balance:
No maximumMax. Graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
3.47%+4
2.44%+45, 10, 15, 20$5,000 – $250,000Fixed APR:
3.47%+4Variable APR:
2.44%+4Min. credit score:
670Loan amount:
$5,000 to $250,000Loan terms (years):
5, 10, 15, 20Repayment options:
Academic deferment, military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must be U.S. citizen or permanent residentCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
YesMax undergraduate loan balance:
$250,000Max graduate loan balance:
$250,000Offers Parent PLUS refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.24%+7N/A5, 7, 10, 12, 15, 20Up to $300,000Fixed APR:
2.24%+7Variable APR:
N/AMin. credit score:
670Loan amount:
Up to $300,000Loan terms (years):
5, 7, 10, 15, 20Time to fund:
Usually one business dayRepayment options:
Academic deferral, military deferral, forbearance, death/disability dischargeFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsMax. undergraduate loan balance:
$300,000Max. graduate balance:
$300,000Offers Parent PLUS loans:
YesMin. income:
None

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
3.05%+
3.05%+7, 10, 15$10,000 up to the total amount of qualified education debtFixed APR:
3.05%+Variable APR:
3.05%+Min. credit score:
670Loan amount:
$10,000 up to the total amountLoan terms (years):
7, 10, 15Repayment options:
Military deferment, loans discharged upon death or disabilityFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
AESMax. Undergraduate Loan Balance:
No maximumMax. Gradaute Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.89%+N/A5, 8, 12, 15$7,500 to $300,000Fixed APR:
2.89%+Variable APR:
N/AMin. credit score:
670Loan amount:
$7,500 to $300,000Loan terms (years):
5, 8, 12, 15Repayment options:
Does not discloseFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen and have and at least $7,500 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 12 monthsLoan servicer:
PenFedMax. Undergraduate Loan Balance:
$300,000Max. Graduate Loan Balance:
$300,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.69%+N/A5, 10, 15$7,500 up to $250,000
(depending on highest degree earned)Fixed APR:
2.69%+Variable APR:
N/AMin. credit score:
680Loan amount:
$7,500 to $250,000Loan terms (years):
5, 10, 15Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000Customer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Rhode Island Student Loan AuthorityMax. Undergraduate Loan Balance:
$150,000 – $249,000Max. Graduate Loan Balance:
$200,000 – $249,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.49%+6
1.99%+65, 7, 10, 15, 20$5,000 up to the full balance of your qualified education loansFixed APR:
2.49%+6Variable APR:
1.99%+6Min. credit score:
Does not discloseLoan amount:
$5,000 up to the full balanceLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, military defermentFees:
NoneDiscounts:
Autopay, loyaltyEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
NoMax undergraduate loan balance:
No maximumMax graduate loan balance:
No maximumOffers Parent PLUS refinancing:
YesCompare personalized rates from multiple lenders without affecting your credit score. 100% free!

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2. Consider using a cosigner when refinancing

Most lenders require you to have good to excellent credit to qualify for student loan refinancing — a good credit score is usually considered to be 700 or higher. There are also several lenders that offer refinancing for bad credit, but these loans typically have higher interest rates compared to good credit loans.

If you have poor credit and are struggling to get approved, consider applying with a creditworthy cosigner to improve your chances. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

Tip: A cosigner can be anyone with good credit who is willing to share responsibility for the loan. For example, you could ask a parent, another relative, or a trusted friend to cosign.

Just keep in mind that if you can’t make your payments, your cosigner will be liable — this could also damage their credit.

Learn More: Best Student Refinance Companies: Reviewed and Rated

3. Explore income-driven repayment plans

If you have federal student loans, signing up for an income-driven repayment (IDR) plan could make your loan payments easier to manage. On an IDR plan, your payments are based on your income — usually 10% to 20% of your discretionary income. Additionally, you could have any remaining balance forgiven after 20 to 25 years, depending on the plan.

Here’s how the four main IDR plans compare to a few other federal repayment plan options:

Repayment planWho’s eligible?Monthly paymentRepayment termsEligible for loan forgiveness?Standard repayment planAny borrower with Direct or FFEL LoansAmount when payments are spread equally over 10 years (usually $50 minimum) 10 yearsNoGraduated repayment planAny borrower with Direct or FFEL LoansDepends on loan amount
(payments start low and increase every 2 years)10 yearsNoExtended repayment planAny borrower with more than $30,000 in Direct or FFEL LoansFixed: Spread evenly over up to 25 years

Graduated: Depends on loan amount (start low and increase every 2 years)Up to 25 yearsNoIncome-Based Repayment (IBR)Borrowers with partial financial hardship

(no Parent PLUS Loans)For borrowers who took out loans after July 1, 2014: 10% of discretionary income
(never more than 10-year plan)

For borrowers who took out loans before July 1, 2014: 15% of discretionary income
(never more than 10-year plan)For borrowers who took out loans after July 1, 2014: 20 years

For borrowers who took out loans before July 1, 2014: 25 yearsYesPay As You Earn (PAYE)Must have partial financial hardshipMust have borrowed on or after Oct. 1, 200710% of discretionary income
(never more than 10-year plan)20 yearsYesRevised Pay As You Earn (REPAYE)Any borrower
(no Parent PLUS Loans)10% of discretionary income
(no cap)20 years
(25 years if repaying grad school debt)YesIncome Contingent Repayment (ICR)Any borrower
(Parent PLUS Loans must be consolidated)20% of discretionary income
(or income-adjusted payment on 12-year plan)25 yearsYes

Check Out: PAYE vs. REPAYE: Which Repayment Plan Is Right for You?

4. Pursue loan forgiveness for federal student loans

There are several forgiveness programs available to federal student loan borrowers. These programs generally require you to be employed in a certain field and to make qualifying payments for a specific period of time.

For example: If you work for a nonprofit or government organization, you might be eligible for Public Service Loan Forgiveness (PSLF) after making qualifying payments for 10 years.

Other professions that might qualify for federal forgiveness programs include:

DentistsDoctorsLawyers NursesPharmacistsTeachersKeep in mind: Unfortunately, private student loan forgiveness doesn’t exist. However, there are other options that could help you more easily repay your private loans — such as refinancing.

Learn More: Private Student Loan Consolidation

5. Adopt the debt avalanche or debt snowball method

There are also some situations where you might simply have to concentrate on paying off your loans as quickly as possible — such as if you have multiple loans and aren’t eligible for forgiveness. Here are a couple of payoff strategies that could help:

Debt avalanche method

With the debt avalanche method, you’ll focus on paying off your loan with the highest interest rate first while making the minimum payments on your other loans.

Once this first loan is paid off, you’ll move on to the loan with the next-highest interest rate — continuing until all of your loans are repaid.

Tip: The debt avalanche method can help you save money on interest — but it can also take a while to see your results. If you’re more motivated by small wins, you might want to consider the debt snowball method instead.

Debt snowball method

With the debt snowball method, you’ll target your smallest loan first as you continue making the minimum payments on your other loans.

After this first loan is repaid, you’ll move on to the next-smallest loan — continuing until all of your loans have been paid off.

Tip: The debt snowball method typically provides faster results than the debt avalanche, which can provide motivation through your payoff journey.

But if you don’t mind waiting to experience a win and want to save more on interest, the debt avalanche method might be a better fit.

Check Out: How Often Can You Refinance Student Loans?

Frequently asked questions

Here are the answers to a few commonly asked questions about paying off $70,000 in student loans:

How long does it take to pay off $70,000 in student loans?

This will mainly depend on the type of student loans you have and your repayment plan.

Federal student loans: Depending on the repayment plan you choose, it could take 10 to 25 years to repay your federal loans. You could also choose to consolidate your loans into a Direct Consolidation Loan and extend your term up to 30 years.Private student loans: Repayment terms on private loans usually range from five to 20 years, depending on the lender. You might also be able to reduce your repayment time by refinancing to a shorter term or by making extra payments on your loans.

Can I file for bankruptcy to eliminate my student loan debt?

Yes, you can file bankruptcy for student loan debt. However, it could be hard to actually have your loans discharged. If you file for Chapter 7 or Chapter 13 bankruptcy, you’ll have to prove to the court that repaying your loans would cause an undue hardship for you and your dependents.

If the court decides in your favor, your loans could be:

Fully dischargedPartially discharged with you responsible for the remainder of the balanceAdjusted with different terms to make repayment easier (such as a lower interest rate)Tip: Bankruptcy will severely damage your credit and should be considered a last resort. If you’re thinking about filing for bankruptcy, it’s a good idea to discuss your situation with a lawyer first so you can be sure it’s the right decision for your finances.

re student loans forgiven after 20 years?

This depends on the type of loans you have.

If you have federal student loans and sign up for an IDR plan, you could have any remaining balance forgiven after 20 to 25 years. There are also other programs that offer forgiveness sooner — for example, if you’re eligible for PSLF, you could have your loans forgiven after 10 years.If you have private student loans, you aren’t eligible for forgiveness. If you have good credit, it could be a good idea in this case to refinance for a lower interest rate so you can save money on interest and possibly shorten your repayment time.

Do children inherit student debt?

Typically no. Here’s what generally happens with student loan debt after death:

Federal student loans are discharged upon the death of the primary borrower. If you have a Parent PLUS Loan, it will be discharged if you or the student who benefitted from it passes away.

Private student loans are often discharged similarly to federal loans — though keep in mind that this is at the discretion of the lender. If the lender doesn’t discharge the loans, they’ll be considered part of your estate and paid off by your assets.

The post How to Pay Off $80,000 in Student Loans appeared first on Credible.

Townhouses are a common type of housing, and you’ve almost certainly seen your share of townhouse communities — or, at the very least, a row of townhomes lining a street — where you live. This distinct building style shares many similarities with detached homes and condos, but there are also a number of features that set townhouses apart.

Here’s what you need to know about townhouses and how they compare to condos and single-family houses:

What is a townhouse?Townhouse vs. condo vs. housePros and cons of a townhouseTips for buying a townhouse in 2021Should I buy a townhouse?

What is a townhouse?

A townhouse is an individually owned, residential home — usually multi-level — that shares a wall with at least one other home. Because they’re often constructed side by side, townhouses are sometimes referred to as row houses, particularly when located in a dense urban area.

The owner of a townhome owns both the structure and the land it sits on. In some cases, townhouse clusters are part of a larger townhome community, which is often managed by a homeowners association that sets the rules for the community, collects membership fees from the homeowners, and arranges for maintenance.

Townhouse vs. condo vs. house

Although townhouses, single-family houses, and condos all serve as residential homes and can be financed with a mortgage, they’re actually quite different. Here’s a breakdown of the primary differences between these three property types:

TownhouseDetached houseCondoType of ownershipFee simple: includes the structure and the landFee simple: includes the structure and the landCondominium: includes the space inside the condo but not the outside space or landCost to buyUsually less than a detached house but more than a condoUsually the most expensiveUsually the least expensiveFinanceStandard mortgage financingStandard mortgage financingSubject to financing restrictionsNeighborsAt least one shared wallNo shared wallsAt least one shared wallMaintenance responsibilitiesYou’re responsible for the exterior and interior of your home. You and your neighbors share responsibility for walls common to both of your homesYou’re responsible for all maintenance You’re only responsible for interior maintenance, such as plumbing; the condo association takes care of common areasInsuranceStandard homeowners insuranceStandard homeowners insuranceCondo (HO-6) insurance; condo association policy insures common areas and exterior of buildingAmenitiesSometimes, if part of a planned communitySometimes, if part of a planned communityOften; many communities have shared amenities like a swimming pool and fitness center

Any property you buy has rights of ownership associated with it, but some properties have more rights than others:

Fee-simple ownership: When you buy a detached home or townhome, you receive fee-simple ownership. This is the least restrictive type of ownership. It allows you to use your house, yard, and any other structures on your land as you wish, as long as you act within the law and abide by HOA rules, if applicable.Condominium ownership: Condo owners have fewer ownership rights than owners of houses and townhouses. What they own individually is the space between the exterior walls of their unit, but not the exterior structure of the unit. They might also be entitled to exclusive use of amenities, like a patio or parking space, located in a common area but reserved specifically for their own use.

Read: Condos vs. Houses: How to Decide

Financing

Detached homes and townhouses are generally easier to finance than condos are. That’s because when you buy a detached home or townhouse, you buy the house and land it sits on.

When you buy a condo, the agency backing your mortgage loan — Fannie Mae, for instance — must approve or “warrant” the building or community before it’ll sign off on financing. When it does, it’ll likely be at a higher interest rate than you’d get with a house or townhouse.

Why the higher interest rate? Mortgage rates on condos are usually higher since the lender has to take on additional risk. With a townhouse, the lender only has to worry about you defaulting on your mortgage. But with a condo, it also has to consider the fact that other condo owners in your building might default on their loans and HOA dues as well. Such defaults could threaten the financial viability of the complex and, in turn, negatively impact your condo’s value.

Pros and cons of a townhouse

Every type of home has pros and cons. Here are some to consider before you buy a townhouse:

Pros

Less expensive than a detached homeSame financing options and ownership rights as a detached homeLess yard to maintainA sense of community

Cons

Less privacy than a detached homeOften subject to HOA restrictions and feesLimited yard sizeFewer style choices

Tips for buying a townhouse in 2021

The process of buying a townhouse compared to a single-family house is relatively similar, but you’ll want to be especially considerate of the following:

Budget: In addition to the home price and closing costs, consider HOA fees. Make sure these costs don’t send you over budget.HOA: An HOA protects a community’s property values by enforcing certain standards. These standards include appearance and upkeep of your unit, the kinds of structures you can construct in the yard, and whether you can keep a boat or RV on your property. Ask yourself if these policies are overly constricting.Amenities: Amenities like a pool, fitness center, and clubhouse can make a townhouse community a more enjoyable place to live, but you’ll pay to maintain them as part of your HOA dues. Decide whether you’d use them enough to justify the expense.Neighbors: Because townhouses are attached, you’ll share walls with at least one neighbor, and you’ll live in close proximity to all your neighbors. Living so close together can foster a sense of community, but you may not be comfortable with the noise or lack of privacy. An end unit will give you slightly more privacy.Future plans: Consider your life stage and think about how happy you’ll be in a townhouse over the long term. Ask yourself if it will suit your needs a few years from now, and take into consideration your family and financial goals.

Should I buy a townhouse?

A townhouse could be a great choice if you’re seeking a smaller home with a yard that requires minimal upkeep. Perhaps paying HOA dues and the lack of privacy are small compromises when compared to the benefits of owning an easy-to-maintain home in full.

If, on the other hand, the thought of homeownership conjures images of lots of space and privacy, where you can do whatever you want without neighbors or HOAs interfering, a detached home might be a better choice.

And, if all exterior maintenance is a deal breaker, consider buying a condo instead.

The post What Is a Townhouse? Everything You Want to Know appeared first on Credible.

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The average student loan debt for college students is $39,351. However, some students — such as those attending expensive law or medical programs — end up with $300,000 or more in education debt.

Paying off such a large balance can be difficult and time consuming. For example, if you had $300,000 in federal student loans and paid them off on the standard 10-year repayment plan with a 6.22% interest rate, you’d end up with a monthly payment of $3,364 and a total repayment cost of $403,663.

The good news is that there are several strategies that could help you pay off your student loans more easily.

Here’s how to pay off $300,000 in student loan debt:

Refinance your student loansConsider using a cosigner when refinancingExplore income-driven repayment plansPursue loan forgiveness for federal student loansAdopt the debt avalanche or debt snowball method

1. Refinance your student loans

Student loan refinancing is the process of paying off your old student loans with a new loan. Depending on your credit, you might get a lower interest rate through refinancing — this could save you money on interest and potentially help you pay off your loan faster.

Or you could opt to extend your repayment term through refinancing to reduce your monthly payments and lessen the strain on your budget. Just keep in mind that choosing a longer term means you’ll pay more in interest over time.

Keep in mind: While you can refinance both federal and private loans, refinancing federal student loans will cost you access to federal benefits and protections — such as income-driven repayment plans and student loan forgiveness programs.

If you decide to refinance your student loans, be sure to consider as many lenders as possible. This way, you can find the right loan for your situation.

Here are Credible’s partners that offer refinancing for student loan balances of $300,000:

LenderFixed rates from (APR)Variable rates from (APR)Loan terms (years)Loan amounts

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.44%+1
2.24%+15, 7, 10, 15, 20$10,000 to $500,000
(depending on degree and loan type)Fixed APR:
2.44%+1Variable APR:
2.24%+1Min. credit score:
Does not discloseLoan amount:
$10,000 to $750,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
Autopay, loyaltyEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $150,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.99%+2
2.94%+25, 7, 10, 12, 15, 20$5,000 to $300,000
(depending on degree type)Fixed APR:
2.99%+2Variable APR:
2.94%+2Min. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Loan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
Military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
All states except for MECustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
College Ave Servicing LLCMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $300,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.16%+
2.11%+5, 7, 10, 15, 20$5,000 to $500,000Fixed rate:
2.44%+1Variable rate:
2.24%+1Min. credit score:
680Loan amount:
$5,000 to $500,000Cosigner release:
YesLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Available in all states, except MS and NVCustomer service:
Email, phone, chatSoft credit check:
YesLoan servicer:
FirstMarkMax. undergraduate loan balance:
$500,000Max. graduate loan balance:
$500,000Offers Parent PLUS refinancing:
YesMin. income:
$65,000 (for 15- and 20-year products)

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.47%+3
2.39%+35, 7, 10, 12, 15, 20Minimum of $15,000Fixed APR:
2.47%+3Variable APR:
2.39%+3Min. credit score:
680Loan amount:
No maximumLoan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
ForbearanceFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved schoolCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
MohelaMax. Undergraduate Loan Balance:
No maximumMax. Graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.24%+7N/A5, 7, 10, 12, 15, 20Up to $300,000Fixed APR:
2.24%+7Variable APR:
N/AMin. credit score:
670Loan amount:
Up to $300,000Loan terms (years):
5, 7, 10, 15, 20Time to fund:
Usually one business dayRepayment options:
Academic deferral, military deferral, forbearance, death/disability dischargeFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsMax. undergraduate loan balance:
$300,000Max. graduate balance:
$300,000Offers Parent PLUS loans:
YesMin. income:
None

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
3.05%+
3.05%+7, 10, 15$10,000 up to the total amount of qualified education debtFixed APR:
3.05%+Variable APR:
3.05%+Min. credit score:
670Loan amount:
$10,000 up to the total amountLoan terms (years):
7, 10, 15Repayment options:
Military deferment, loans discharged upon death or disabilityFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
AESMax. Undergraduate Loan Balance:
No maximumMax. Gradaute Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.89%+N/A5, 8, 12, 15$7,500 to $300,000Fixed APR:
2.89%+Variable APR:
N/AMin. credit score:
670Loan amount:
$7,500 to $300,000Loan terms (years):
5, 8, 12, 15Repayment options:
Does not discloseFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen and have and at least $7,500 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 12 monthsLoan servicer:
PenFedMax. Undergraduate Loan Balance:
$300,000Max. Graduate Loan Balance:
$300,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.49%+6
1.99%+65, 7, 10, 15, 20$5,000 up to the full balance of your qualified education loansFixed APR:
2.49%+6Variable APR:
1.99%+6Min. credit score:
Does not discloseLoan amount:
$5,000 up to the full balanceLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, military defermentFees:
NoneDiscounts:
Autopay, loyaltyEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
NoMax undergraduate loan balance:
No maximumMax graduate loan balance:
No maximumOffers Parent PLUS refinancing:
YesCompare personalized rates from multiple lenders without affecting your credit score. 100% free!

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Trustpilot
All APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures | 6SoFi Disclosures

2. Consider using a cosigner when refinancing

You’ll typically need good to excellent credit to qualify for refinancing — a good credit score is usually considered to be 700 or higher. There are also several lenders that offer refinancing for bad credit, but these loans usually come with higher interest rates compared to good credit loans.

If you’re struggling to get approved, consider applying with a creditworthy cosigner. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

Tip: A cosigner can be anyone with good credit — such as a parent, other relative, or trusted friend — who is willing to share responsibility for the refinanced loan. Keep in mind that this means they’ll be on the hook if you can’t make your payments.

Learn More: Best Student Refinance Companies: Reviewed and Rated

3. Explore income-driven repayment plans

If you have federal student loans, you might consider signing up for an income-driven repayment (IDR) plan. On an IDR plan, your payments will be based on your income — typically 10% to 20% of your discretionary income. Additionally, you could have any remaining balance forgiven after 20 to 25 years, depending on the plan.

Here’s how the four main IDR plans compare to a few other federal repayment plan options:

Repayment planWho’s eligible?Monthly paymentRepayment termsEligible for loan forgiveness?Standard repayment planAny borrower with Direct or FFEL LoansAmount when payments are spread equally over 10 years (usually $50 minimum) 10 yearsNoGraduated repayment planAny borrower with Direct or FFEL LoansDepends on loan amount
(payments start low and increase every 2 years)10 yearsNoExtended repayment planAny borrower with more than $30,000 in Direct or FFEL LoansFixed: Spread evenly over up to 25 years

Graduated: Depends on loan amount (start low and increase every 2 years)Up to 25 yearsNoIncome-Based Repayment (IBR)Borrowers with partial financial hardship

(no Parent PLUS Loans)For borrowers who took out loans after July 1, 2014: 10% of discretionary income
(never more than 10-year plan)

For borrowers who took out loans before July 1, 2014: 15% of discretionary income
(never more than 10-year plan)For borrowers who took out loans after July 1, 2014: 20 years

For borrowers who took out loans before July 1, 2014: 25 yearsYesPay As You Earn (PAYE)Must have partial financial hardshipMust have borrowed on or after Oct. 1, 200710% of discretionary income
(never more than 10-year plan)20 yearsYesRevised Pay As You Earn (REPAYE)Any borrower
(no Parent PLUS Loans)10% of discretionary income
(no cap)20 years
(25 years if repaying grad school debt)YesIncome Contingent Repayment (ICR)Any borrower
(Parent PLUS Loans must be consolidated)20% of discretionary income
(or income-adjusted payment on 12-year plan)25 yearsYes

Check Out: PAYE vs. REPAYE: Which Repayment Plan Is Right for You?

4. Pursue loan forgiveness for federal student loans

There are several student loan forgiveness programs available if you have federal student loans. Most of these require you to work in a certain field as well as make qualifying payments for a specific period of time.

For example: If you have federal loans and work for a nonprofit or government organization, you might be eligible for Public Service Loan Forgiveness (PSLF). Under this program, you’ll need to make qualifying payments for 10 years to have your loans forgiven.

Some occupations that might qualify for a forgiveness program include:

DentistsDoctorsLawyersNursesPharmacistsTeachersKeep in mind: Unfortunately, private student loan forgiveness doesn’t exist. However, there are other options that could help you manage your private loans more easily — such as refinancing.

5. Adopt the debt avalanche or debt snowball method

If you have multiple loans and don’t qualify for forgiveness or refinancing, you might just need to buckle down and focus on paying them off. Here are a couple of strategies that could help:

Debt avalanche method

With the debt avalanche method, you’ll concentrate on paying off the loan with the highest interest rate first while continuing to make the minimum payments on your other loans.

After you pay off the highest-interest loan, move on to the loan with the next-highest rate. You’ll continue with this until all of your loans are paid off.

Tip: While the debt avalanche method can be a good option to save money on interest, it can also take a while before you see any results.

If you’re more motivated by small wins, you might consider the debt snowball method instead.

Debt snowball method

With the debt snowball method, you’ll focus on paying off your smallest loan first while making the minimum payments on your other loans.

After this loan is paid off, move on to the next-smallest loan — and continue until all of your loans are paid off.

Tip: The debt snowball method generally offers quicker results. But if you’d rather save more money on interest and don’t mind waiting to see your savings, the debt avalanche might be a better fit.

Frequently asked questions

Here are the answers to a few commonly asked questions about paying off $300,000 in student loan debt:

How long does it take to pay off $300k student loans?

This will depend on the type of student loans you have and the repayment terms you choose.

Federal student loans: It will generally take 10 to 25 years to pay off federal loans, depending on the repayment plan. You could also opt to consolidate your loans into a Direct Consolidation Loan — this will let you extend your term up to 30 years.Private student loans: These loans usually come with repayment terms ranging from five to 20 years, depending on the lender.

Learn More: Private Student Loan Consolidation

Can I file for bankruptcy to eliminate my student loan debt?

Yes, you can file bankruptcy for student loan debt. But keep in mind that actually having your student loans discharged could be quite difficult. To have your loans discharged, you’ll have to prove to the court that repaying them would cause an undue hardship on you and your dependents.

If the court decides in your favor, your loans might be:

Fully dischargedPartially discharged with you responsible for the remainder of the balanceAdjusted with different terms to make repayment easier (such as a lower interest rate)Tip: Bankruptcy will severely damage your credit and make it hard to access new loans in the future. Because of this, it’s best to treat bankruptcy as a last resort after all other repayment strategies have been exhausted.

If you’re thinking about filing for bankruptcy, be sure to consult with a lawyer so you can make the best decision for your financial situation.

re student loans forgiven after 20 years?

This depends on the type of student loans you have.

If you have federal student loans, you could have your loans forgiven after 20 or 25 years if you sign up for an IDR plan. Or you might be able to have them partially or fully discharged even sooner if you qualify for PSLF or another federal forgiveness program.If you have private student loans, you won’t be eligible for federal forgiveness programs. But you might be able to save money on interest and even possibly shorten your repayment time through refinancing.

Do children inherit student debt?

Typically no. Here’s what you can typically expect:

Federal students are discharged upon the death of the borrower. If you have Parent PLUS Loans, they’ll be discharged upon the death of either the parent or the student who benefitted from the loan.Private student loans are often discharged like federal loans — however, this is up to the discretion of the lender. If your lender doesn’t offer a death discharge, then your loans will be considered part of your estate and will be paid off by your assets.

Keep Reading: How Often Can You Refinance Student Loans?

The post How to Pay Off $300,000 in Student Loans appeared first on Credible.

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When you’re checking out homes to buy in your area, there’s one architectural style you might skip over. With their staggered levels and retro curb appeal, split-level homes are seen by some homebuyers as outdated, inconvenient, and a little awkward. But these houses also come with plenty of perks, like a lower price tag, less competition, and lots of space and privacy.

Here’s what you need to know about split-level homes:

What is a split-level house?Types of split-level housesSplit-level vs. bi-level houseShould you buy a split-level house?

What is a split-level house?

A split-level home contains at least three levels of living space separated by short flights of stairs. From the main floor, one set of stairs goes up to the bedroom area and another goes down to a basement level.

There’s plenty of storage space, too, as split-level homes tend to come with finished basements, multiple attics, and integrated garages.

These homes share many of the same features, such as:

Half staircasesLow-pitched roofsDouble-hung windows and bay windowsEfficient use of spaceMinimal exterior design featuresMixed building materials, such as vinyl siding and brickBackground: “Split-level” refers to a home-construction style that was mass produced in the 1950s and became popular in the 1960s and 1970s.

In recent decades, however, this style has fallen out of favor. Only 2% of homeowners said they prefer the split-style floor plan in a recent construction and remodeling trends report conducted by home remodeling website Fixr.

Types of split-level houses

It’s a good idea to explore all your options if you’re buying a home in an area with multiple split-level houses. While most will follow a basic split-level house plan and come with similar features, there are several architectural styles to choose from:

Back split

A back-split home is divided into multiple levels, but you can only see one story when standing outside on the curb. The split levels can only be seen when you walk to the side of the house, while two stories are visible from the back.

When shopping around for your next home — whether it’s a split-level home or not — be sure to shop around and compare mortgage rates. Doing so can potentially save you thousands of dollars in interest over the life of the loan. Credible lets you easily compare rates from our partner lenders.

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Side split

A side-split house, where you can see all levels from the curb, is the most common type of split-level home.

Side-split homes are typically divided into two distinct sides: On one side, the garage is built on the bottom floor with the bedrooms stacked on top to create the middle floor. The kitchen and main living spaces are on the other side of the house, connected by a half-flight of stairs to form the upper floor.

Stacked split

Stacked split homes have multiple floors (typically four or more) with the same number of half-staircases. These are often structured with a basement or informal living area at the bottom level with a kitchen and dining room above, then bedrooms stacked on top. The home entrance is at ground level between the bottom- and middle-level floors.

Standard split

In a standard-split home, the entrance is at the ground level and a short set of stairs leads to the other levels. The bottom level typically includes a garage, while the middle level has the main living-area rooms such as the kitchen, dining room, and living room. The bedrooms and bathrooms are all located at the top level.

Split-level vs. bi-level house

Some people use the terms bi-level and split-level interchangeably, but they refer to two distinct home-construction styles. Here are the main differences between the two styles:

Split-levelBi-levelHas at least three levels separated by half-staircasesHas only two levels separated by a full staircaseEntrance is typically located on the middle floorEntrance to the home is located on the bottom floorCommon living areas are often located on the main level, bedrooms on a level above, and a basement or family room in the area belowLower level may contain the bedrooms and bathrooms, while the upper level has the other main living spaces, such as a family room, dining room, and kitchenLiving areas are distinctly separatedMay have open floor plan

Pros and cons of a split-level house

Pros

Better separation between floors: The downstairs and upstairs areas are separated by half-staircases, which helps contain noise and provides more privacy. Potentially more affordable: Because these homes have been out of demand for a few decades, they may have lower price tags compared to other styles of homes. More outdoor space: Even if the lot size is rather small, split-level homes stack the living space vertically. The efficient use of space leaves more room in the backyard for recreation.

Cons

Difficult to remodel: Because each level of a split-level home is built with a specific purpose in mind — and they’re separated by half-staircases — the layout isn’t conducive to major changes.Lots of stairs: Split-level homeowners will need to climb staircases every day to get to another part of the house. This might be fine for some families, but it could be more complicated for aging seniors, people with disabilities, or families with small children.Potentially harder to sell: You can improve your home’s curb appeal, but some buyers may still see split-level homes as outdated or awkward. And because many split-level homes were built in the 1950s, your home may need some updating before putting it on the market.

Should you buy a split-level house?

The answer comes down to the availability of homes in your area and what you’re looking for. You may have noticed that home prices have increased and housing inventory has shrunk within the last year or two. That could leave you with fewer choices when shopping for a home.

But a split-level house may be priced lower than ranch-style homes in your area with a similar square footage. And, because they’re less desirable, you may have fewer buyers to compete against. These factors might make split-level homes more appealing to you.

Other perks to consider: Split-level homes often come with more privacy and lots of extra space, which you can use as a home office or a recreation area. Just be sure you’re OK with having to climb stairs every day, and know that it may be harder to sell the home when you’re ready to move.

Keep Reading: How to Know If You Should Buy a House

The post Split-Level House: What They Are and the Types appeared first on Credible.

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If you’re planning to list your home for sale, you’ll want to make a great first impression. That usually means making a few repairs and upgrades, inside and out.

Here are 15 home improvements you might want to complete to help your home sell quickly — and at the best possible price:

Paint the exterior of your housePaint the interior of your houseRefinish or replace flooringFix or replace window and door screensRemove wallpaperRefresh countertopsReplace light fixturesDeep clean your homeGet a new roofSpruce up your landscapeCreate an outdoor living spaceHave your home stagedFix leaky plumbingCorrect obvious safety problemsReplace knobs and handles

1. Paint the exterior of your house

Few things can revitalize a house like a fresh paint job. The prep work will eliminate many of your home’s blemishes — like chips and cracks in the trim — to help it look newer.

More than just an aesthetic update, painting the exterior also prevents moisture and termite damage and helps the home stay in good condition for many years to come.

If a full paint job is not in your budget, consider having a professional pressure wash your home and touch up any areas where the paint is chipped or flaking.

2. Paint the interior of your house

Painting the inside of your house is a cost effective way to spruce it up. It’s also fairly easy if you have a steady hand and an eye for detail. Just make sure you can complete the proper preparations. That means cleaning the walls, filling and sanding holes, taping off trim, and protecting floors with drop cloths.

You can paint an entire room in a day or two, and with some planning you could do all the rooms in your home over a few weekends. Consult with your real estate agent about the best neutral colors to appeal to a wide range of buyers and ask your local paint store about the best tools and paint for the job.

Not Moving? Refinance Your Mortgage Quickly: Find a Better Rate and Prequalify in Just 3 Minutes

3. Refinish or replace flooring

Historic wooden floors are often an essential part of a home’s character and a desirable feature for buyers. They can also be refinished if they’re not looking their best anymore. Durable tile, stone, and engineered hardwood can look good for decades with the proper care.

But if you have old carpet or worn-out vinyl, replacement may be your best bet. Old carpet harbors stains, smells, and allergens; old vinyl can make your home look cheap. Ask your real estate agent for advice on the most popular flooring choices in your area and consider making a replacement.

If you’ll be selling your home with its existing floors, consider having them professionally cleaned. This affordable option will still help your home show better (and possibly smell nicer, too).

4. Fix or replace window and door screens

Bent or torn window and door screens, especially on the front of your home, leave your property looking neglected. Plus, damaged screens can’t do their job of letting fresh air in while keeping insects out.

Low-cost fixes include cleaning and patching (or completely removing) damaged screens. An ideal solution, if it fits your budget, is to replace the screens with new ones.

If you’re handy, you can replace them yourself. Otherwise, professional services are available to measure and install custom window screens onsite at your home. And if you’re not in a hurry, you can take the measurements yourself and order custom screens online.

5. Remove wallpaper

Wallpaper can make a striking impression, but not always a good one. Tastes in patterns and textures vary more than tastes in paint colors, and buyers won’t be excited about the messy and time-consuming prospect of removing an unsightly wallpaper. Taking care of this task before listing your home will put it one step closer to being turnkey.

Get Inspired: 18 Home Improvement Projects You Can Wrap Up in a Day

6. Refresh countertops

After the exterior, the kitchen may be the next most important thing for catching a buyer’s attention. While a full kitchen remodel is a time-consuming and expensive undertaking that is unlikely to provide a good return on your investment, replacing outdated or worn-out countertops is a simpler solution that can make a big difference.

If that’s out of the question, look into resealing, resurfacing, or refinishing. The best option will depend on your countertop material.

7. Replace light fixtures

Older homes often have older fixtures, or mismatched fixtures from a variety of decades. New light fixtures, both inside and out, can update a home’s look for minimal expense and effort. They can also help you create a cohesive style, from traditional to mid-century modern to contemporary.

When you replace the fixtures, you can also install smart light bulbs. These allow you to adjust each bulb’s color, temperature, and brightness right from your phone to create the perfect ambience. Plus, these bulbs use energy-efficient, money-saving LEDs and last for years.

8. Deep clean your home

Even if you’re still living in your home until it sells, a deep clean before listing it will make a big difference. We all become somewhat blind to the hard water stains by the sink, the dust on our drapes, and the grime on our windows. If scrubbing isn’t your favorite form of stress relief, hire a professional cleaning service. They’ll knock out these tasks and many more to make your house sparkle.

9. Get a new roof

A new roof is not a glamorous or exciting home improvement project. It’s also not an expense future homeowners want to deal with. What they do want is the security of knowing that the major purchase they’re about to make won’t suffer water damage from a leak the next time it rains. If your roof is nearing the end of its life, consider getting some bids to replace it.

It’s possible that this project will be too costly to be worth the investment, and it’s not a good place to test your DIY skills. But do keep in mind that if a buyer’s home inspector says your roof is shot, you might have to lower your asking price.

Related: Home Improvement Loans

10. Spruce up your landscape

Curb appeal is the first thing a prospective buyer will notice when they come to your home, and your yard can make or break their impression. Bright flowers and neatly trimmed hedges will help them envision the compliments their guests will give them at the housewarming party. Weeds will make them wonder how much to budget for gardening service.

Also keep in mind that less is more. Buyers will appreciate a clear view of the house, so if your trees are overgrown or your potted plant collection has overtaken the front porch, look for ways to scale back.

11. Create an outdoor living space

Speaking of guests, many buyers love the idea of relaxing and entertaining in the backyard. Try to convince them that your home is the place to do it (after they buy it, of course).

You don’t need to build an outdoor kitchen to check this item off your list. Simply create an outdoor space that suggests an inviting place to gather, like four comfortable chairs around a fire pit or a long picnic table with colorful place settings.

12. Have your home staged

The most functional items for comfortable living, like reclining sofas and blackout curtains, usually aren’t the most attractive options for showing off your home. That’s why you might want to use a home staging company.

Home staging is technically not a home improvement, but it will make your home massively more appealing to buyers. A professional designer’s staging tricks and arsenal of furniture and decor can make your home look like the bright, airy, and on-trend “after” shots from your favorite home improvement show.

13. Fix leaky plumbing

Similar to replacing the roof, this one’s not exciting. But if buyers see a dripping faucet or shower head, they might wonder what other maintenance you’ve neglected.

If your fixtures are fancy, they may be worth repairing. Otherwise, a replacement might be the best option, especially if the repair would be labor intensive or the fixture is old. Consider enlisting a handyman or plumber for this work if you’re not interested in crawling under the sink.

Also See: 8 Popular Pandemic Home Renovations to Transform Your Space

14. Correct obvious safety problems

If your smoke detectors don’t work, the furnace is broken, or the stair railing is loose, buyers (or at least their home inspectors) will notice.

Similar to leaky faucets, safety issues are a sign of neglect. They can also prevent buyers from getting approved for certain mortgages. Bite the bullet and pay for these repairs up front.

15. Replace knobs and handles

Here’s a project almost anyone can crank out with a ratcheting screwdriver and a trip to the hardware store. Unscrew all the scratched up and worn out drawer handles and cabinet knobs in your kitchen, bathrooms, and laundry room and replace them. Make sure to select new ones with the same hole alignment. This minor improvement can make a surprisingly big difference, especially if your hardware is dated.

Consider a cash-out refinance

A cash-out refinance can help you pay for multiple home projects and lower your mortgage rate. It can be a good choice if you’re not moving anytime soon. If selling is in your shorter-term plans, consult with your real estate agent to go over the most profitable home improvements that’ll help you sell your home.

Credible can get you started with your cash-out refinance. You can compare loan options from all of our partner lenders and get prequalified rates in just a few minutes.

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If you want to get a mortgage but your credit score needs work, you might think homeownership is out of reach. But you don’t need perfect credit to get a home loan. It’s possible to get a mortgage with a 600 credit score.

Check out some of the home loan programs with flexible credit requirements — and how you can improve your credit score to get better terms:

Can I buy a house with a 600 credit score?Mortgage loans for a 600 credit scoreHow to improve your credit score

Can I buy a house with a 600 credit score?

A 600 credit score is high enough to get a home loan. In fact, there are several mortgage programs designed specifically to help people with lower credit scores. However, you’ll need to meet other lending requirements too. For instance, the lender will check your debt-to-income ratio (DTI), verify employment, and go over your credit history. You might have to make a down payment as well.

A lower credit score also means you’ll have higher borrowing costs because there’s more risk for the lender. These costs usually come in the form of mortgage insurance premiums and higher interest rates.

Mortgage loans for a 600 credit score

If you’re looking for a home loan with a 600 credit score, check out these programs:

FHA home loan

FHA home loans are mortgages insured by the Federal Housing Administration. The government backing removes some of the risk for lenders, so people with lower credit scores and smaller down payments may qualify.

If you have a credit score of 580 or more, you’ll only need to put down 3.5% of the home’s purchase price, while a score of 500 to 579 requires at least 10% down.

You’ll have to pay two types of mortgage insurance with an FHA loan as well: an upfront premium and an ongoing fee — known as an annual mortgage insurance premium — that’s baked into your monthly payment. Depending on how big of a down payment you make, you’ll have to pay these mortgage insurance premiums for either 11 years or the life of the loan.

VA home loan

Backed by the U.S. Department of Veterans Affairs, VA loans are geared toward veterans, service members, and surviving spouses. You’ll pay no money down and no mortgage insurance, though you’ll be required to pay an upfront funding fee between 1.4% and 3.6% of the loan amount.

There’s no minimum credit score requirement for VA loans. The lender sets its own minimum, which means it’s possible to get this type of loan with a 600 credit score.

USDA home loan

USDA home loans are no-money-down mortgages guaranteed by the U.S. Department of Agriculture. To get one, you’ll need to meet income requirements and buy a home in a USDA-designated rural area. Borrowers are also responsible for paying mortgage insurance in the form of an upfront guarantee fee and an annual fee.

Like VA loans, every lender sets its own credit score requirements. So it’s possible to get a USDA-backed mortgage with a 600 credit score, as long as you find a lender willing to work with you.

Non-qualified mortgages

A non-qualified mortgage loan, also known as a non-QM loan, is a home loan that doesn’t satisfy the requirements to be a Qualified Mortgage. Non-QM loans are ideal for borrowers with fluctuating incomes — such as self-employed workers — and people who can’t meet stringent conventional loan requirements.

Non-qualified mortgages are usually offered by banks that set up and service their own unique mortgage programs, such as interest-only home loans. You can shop around for lenders that offer these loans or work with a mortgage broker who can make recommendations.

How to improve your credit score

If you can pause your mortgage search for a few months and work on improving your credit, you may be able to qualify for conventional financing. Or you might get better loan terms that help you save money.

Here are some ways to boost your credit score:

Make on-time payments

Payment history is one of the most important factors that influences your credit scores, so focus on paying all of your bills on time. To avoid missed or late payments, set up automatic payments or schedule a reminder on your phone a few days before the bill is due. Make sure you have money in your checking account before the payment is processed too.

Tip: If you’re in danger of missing a payment, contact the service provider or lender right away. They may be able to move the due date or work out a payment plan for you while keeping your account in good standing.

Pay down debt

Paying down outstanding balances lowers your credit utilization ratio, which is the amount of credit you’re using compared to your available credit. A lower credit utilization signals less risk for a lender. In turn, it can help improve your credit scores.

Tip: Aim to keep your credit card balances to 30% of the credit limit or less, and pay off loan balances where possible.

There’s another bonus to paying down your credit card debt: It improves your debt-to-income ratio, which measures how much of your monthly income goes toward debt payments. With a higher credit score and lower DTI ratio, you improve your chances of qualifying for a home loan.

Don’t close credit card accounts

Credit scores are also based on the length of your credit history, so the simple act of keeping credit card accounts open can help keep your credit healthy.

You might have been tempted to close an account if you don’t use it much or it comes with a high annual fee. But you can keep the account active by connecting the card to a small recurring bill and setting up payment reminders.

Tip: Additionally, your card issuer might be able to downgrade the account to a card with lower fees. Just make sure you ask about changes to your perks and rewards, and make sure the issuer will report the new card to the credit bureaus as the same account.

Limit new credit applications

Every time you apply for new credit, whether it’s for a credit card or loan, the lender reports a hard inquiry to the credit bureaus. Plus, the new account can bring down the average age of your credit history and increase your outstanding debt. All of these factors can bring down your credit score, so always keep this in mind before opening a new account.

Get a credit-builder loan

A credit-builder loan is designed to help you build credit as you make payments. They’re typically available at smaller financial institutions, such as community banks and credit unions.

If you qualify, you don’t get the money upfront. Instead, the lender holds it in a savings account and collects payments from you (with interest) throughout the loan term. You get the money once the loan is paid off, usually within six to 24 months.

Become an authorized user

With this option, a trustworthy friend or relative adds you to their credit card account. You get your own copy of the credit card and can make purchases with it, but you’re not required to make payments. The account activity will be reflected on your credit reports along with the primary account holder’s.

An account in good standing will positively impact your credit, but the opposite is true too. Any late payments or high balances may negatively affect your credit.

Regularly check your credit reports

Your credit scores are based on the information in your credit reports, so it’s a good idea to make sure they don’t contain mistakes. You’re entitled to a free credit report with TransUnion, Equifax, and Experian once a year at AnnualCreditReport.com. If you find an error or signs of identity theft during your review, you can resolve it with the credit bureau.

The post How to Get a Mortgage With a 600 Credit Score appeared first on Credible.