I am single man, I have no children. I make about $55K – 60K a year, and I also own about 48K on student loans. I have saved some money for down payments, and for emergency funds. That is excluding my 401K and Stocks. What is your opinions?
I have only a Federal Student loans and the interest rates are around 6%. I thought about Income-Based Repayment?
Robert: All the above answers ignore a very important question: Do you currently rent or live with your parents. If you rent you are pouring money down a rat hole. If you buy you are building equity, maybe just a little at first but it will snowball. Even if the house payments are more than rent it may be worth it. And if you get a roommate you'll create income.
Pay off loans.
With your income and qualifying for a $250,000 mortgage (but only buying a $150,000 house) – you can afford both. Just make larger student loan payments; a normal monthly payment and then a couple of hundred towards the principal.
as for me, i would pay off all loans first, and quickly… then, save up enough to not pay pmi (the too expensive private mortgage insurance), and start small (a townhouse or condo)… and with no other loans, attempt to pay down the home loan in 7-8 years… then the world is yours… i paid mine off in 5 1/2 years with extra jobs, and i have never looked back… being debt free, and never again paying interest is the only way to go…
All dependents on your personal interest…Calculate n see what s more important….You will knw better then any yahoo answers here
As long as you can buy a house and keep up the payments on your student loan, I would buy the house. The price of homes tend to go up over the years.
If you are in an area where property values are expected to increase sharply, then you should get the house. But that's subject to a mortgage company's opinion on whether you can afford to keep paying off your student loans, and the mortgage at the same time. If you have to play any games with the down payment, like borrow any portion of it, then don't do it. If it was me, and I got a house, I would immediately rent out all the bedrooms except my own, and use the income to pay down the student loans.
If, however, property prices are stable or declining in your area, pay down the student loans.
I am not big on finances, but just common sense would tell me that you should pay the loan off first. That way you can afford a better house, and improve your credit in the process.
What's the interest on the student loans? If it's low and you can handle the payments, while paying the mortgage, then buy the house. Most think that interest rates are headed up, so if you find a good home value – now may be the time
But, if the loans make your mortgage rate higher, you may want to knock them down a bit.
The mortgage company will make you pay off the student loans before they will give you the mortgage. They are getting very strict with that since 2008.