Two Smart Strategies for College Funding
Whether you need to free up monthly cash flow or access a lump sum, we have financing solutions designed for families planning for college.
Cash-Out Refinance
Access Lump Sum for Tuition
Typically 2-3% lower than Parent PLUS loans
Mortgage interest may be tax deductible
Cover tuition, housing, books, and more
Example: Cash-out refinancing typically offers lower rates than Parent PLUS loans, creating substantial monthly savings
Rate & Term Refinance
Free Up Monthly Cash Flow
Lower your mortgage payment by $300-800/month
Don't tap equity, just improve cash flow
Use savings for ongoing college expenses
Example: Refinancing to a lower rate can free up hundreds of dollars monthly for college expenses
Smart Planning Timeline
When to consider each financing option based on your child's age
Elementary & Middle School
Start building home equity and improving credit score
Focus: Pay down mortgage principal and maintain excellent credit
Freshman & Sophomore Year
Evaluate your home equity and refinancing options
Action: Get a home appraisal and review current mortgage rates
Junior Year
Critical planning year - know your college costs
Prepare: Calculate total 4-year costs and compare financing options
Senior Year
Execute your financing strategy before tuition is due
Execute: Close refinance 60 days before first tuition payment
During College Years
Monitor and adjust your strategy as needed
Optimize: Consider HELOC for additional expenses or emergencies
Smart Financing Comparison
See why home equity financing is often the smartest choice for funding college education
| Feature | Home Equity | Student Loans | Credit Cards |
|---|---|---|---|
| Monthly Cash Flow Improvement | Substantial monthly savings | No immediate relief | Minimum payments only |
| Interest Rate | Lower rates (tax deductible) | Higher rates (limited deductibility) | Highest rates (not deductible) |
| Loan Amount Available | Up to 80-90% of home value | Limited by school costs | Limited by credit score |
| Repayment Terms | 15-30 years | 10-25 years | Revolving debt |
| Impact on Home Equity | Converts to education investment | No impact | No impact |
| Builds Credit History for Student | No (parent responsibility) | Yes (but creates debt) | Yes (but high risk) |
* Tax deductibility depends on individual circumstances. Consult your tax advisor.
College Funding Refinance Rates
Explore refinancing options to fund your child's college education. Use your home equity to invest in their future.
Loan Details
LTV: 80.0% | Down: $100,000
Chat with Our Conventional Loan Expert
*Rates are actual rates based on current market conditions. Rates are subject to change without notice.
Your actual rate may vary based on your credit profile and qualifications.
SRK CAPITAL AI can make mistakes. Rates provided by SRK CAPITAL AI should not be considered a commitment to lend.
For complete mortgage disclosure information, please refer to our Terms of Service and for SRK CAPITAL AI disclosure information, please refer to our AI Policy.
Your College Funding Questions Answered
Get clear answers about using home equity to fund your child's education
Start Saving for College Today
Don't let high interest rates drain your college savings. See how much you could save with a refinance or second mortgage.
Why Families Choose SRK CAPITAL
Join thousands of families who've made college affordable through smart refinancing. No obligation consultation • Expert guidance • Transparent pricing
Questions? Call us directly at your convenience or check our current rates online anytime.