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Old Today, 11:21 AM
 
Location: Chandler, AZ
2,826 posts, read 1,421,449 times
Reputation: 6707

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Quote:
Originally Posted by Southbound16 View Post
Hello everyone! I'd like a fresh perspective from others. I will keep it short and sweet. For our purpose, a 20% down payment and the student loan balance are the same amount with similar interest rates.

Option A: Buy a house with 20% down and continue paying the minimum on your student loans.

Option B: Pay off the student loans completely and buy the house with 3.5% down and the added PMI.

Ideally, it would be amazing to pay off the loans AND save up the 20% down for the house, but we want to start a family soon and biologically, time is not on our side. Factoring in parental leave, household income will be lower for a few years.

Which one would YOU chose? Thoughts??
Buy the house with the 20% down, and then dedicate yourselves to a debt snowball to attack the student loans, other debt, and then kill the mortgage early.

If you choose to have kids before you're truly ready, just be aware that there is no universal force that will "set things right" for you. You can greatly damage your own future, and also theirs.
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Old Today, 03:43 PM
 
745 posts, read 316,784 times
Reputation: 868
I just don’t agree with all this advice to go out and get a mortgage now. The OP is looking to start a family and and to then go on parental leave, resulting in a period of lower income. Meanwhile the student loan sits there and the OP now has a mortgage. When you own a house, you then have costs associated with repairs and upkeep. The added financial risk and stress is not good when are also becoming a first time parent.
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Old Today, 04:39 PM
 
5,068 posts, read 1,343,772 times
Reputation: 5981
Quote:
Originally Posted by jnojr View Post
Buy the house with the 20% down, and then dedicate yourselves to a debt snowball to attack the student loans, other debt, and then kill the mortgage early.

If you choose to have kids before you're truly ready, just be aware that there is no universal force that will "set things right" for you. You can greatly damage your own future, and also theirs.
Then it seems only about 10% of people who have kids can actually afford to, on paper. It would do wonders for population growth, but there would be a ticking time bomb for explosive elder care demand in a few decades. Maybe it would be a boon for people in the industries and supporting industries, but given the financial picture of most Americans, long term care benefits (public and private) will surely be stressed.

Or keep the money, don't buy the house, and just pay the student loan off faster.

Then still keep the money, buy barely how much house you need, and never go without.
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Old Today, 04:56 PM
 
Location: Baltimore, MD
3,868 posts, read 4,376,077 times
Reputation: 7142
"We're expecting to have the full amount by end of 2021 and the first child arrive by mid 2022."

Man plans, God laughs.
Quote:
Originally Posted by ohio_peasant View Post
As a child-free person, it's easy for me to blather with untutored advice. That said, start that family now - as in, tonight, so to speak. Everything else - all financial considerations - can be altered and delayed.
Absolutely.
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Old Today, 04:59 PM
 
Location: SoCal
15,919 posts, read 7,573,006 times
Reputation: 13061
I had my 2nd child while I was renting. It made no difference. In fact to be honest, you want the kid to mess up somebody’s house. I had to repaint one wall with my second child. And the 1 child ruined my nice beige furniture.
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