Posted by Anne_ND on September 26, 2003 at 06:31:44:
Am I correct in thinking this is the situation?
You and your former husband own a house together, it has about $72K equity, half of which is yours.
He has $103K in unsecured student loans, he wants to secure them against the house.
Is that right?
If you do as he suggests, then HIS LOANS become YOUR RESPONSIBILITY to pay, and YOUR EQUITY is now securing HIS LOANS.
This might make sense (from his perspective, not yours) if his student loans were high and the refi would be low, but that’s not the case. It’s rarely a good idea to take unsecured debt (student loans, credit cards, etc) and roll it into a secured debt (mortgage)- in spite of what the banks might tell you.
Don’t do this without talking to your attorney and/or someone who knows your situation and is financially savvy.