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  • $$ advice

    2 physician income, ~$1-1.1 million per year combined, student loan debt combined ~$600k+ (refinanced, rates are 3.5-5.5% interest), no dependents as of now, renting, living in HCOL area.


    Better to just pay off all loans in the next few years and then buy home versus buy home now with lower interest rates available and take longer to pay off loans?

  • #2
    Split the difference.  DINK--will that always be true?  That's probably more impact that both loans and housing combined.

    Really depends on your love for rental and tolerance for ownership and housing market.

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    • #3
      Why not both, you have a gigantic shovel. If you have student loan debt at 5.5% id hardly be content with letting that sit there more than it has to. 3.5% is a little better but not amazing.

      Even in a HCOL you should be able to pay extra to mortgage and student loans unless you're buying a castle. I would think with that income you could refinance to get the 5.5% down. At 600k the difference between 5.5 and 3.5 is pretty significant.

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      • #4
        Are the jobs new?  If so focus on funding your retirement accounts and paying down the loan.  Your idea of the perfect house will change.  In an expensive area I would minimize the transactions.  Develop a strategy to pay off the loans. Start a taxable account also.  This could be used for a down payment when you really know your jobs are secure, your commute is manageable, and you have decided to have or not have kids.

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        • #5
          I'd concentrate on paying off the student loans. Are you just out of training? Are you planning on staying in the area long term? There are many questions that can help give more focused answers but you'll never regret paying off your student loans.

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          • #6
            What are your priorities?  Money is so cheap currently. . .ensure you are paying down the most expensive debt you have first.  It's never too early to purchase if your finances support the decision.

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