We very own a lot of scientific college fund, on $240,100 in consolidated Stafford financing from the 6
Fairy-tale Beginning acolyte
- #step 1
My issues so is this: Like most anyone I do want to own a property, preferrably a while that it 100 years in advance of I’m dated and you can decripit. I’m 30 years old, and you will I want to own a property before I am 40 yrs old. Who merely make feel most unfortunate, fundamentally buying a property in the age 45 or something like that. My spouse and i are trying having children as well, so which have a property would be just the thing for that. (Spouse currently attending university becoming a dental secretary, she will not to able in order to lead far currency)
$20,one hundred thousand in the dos.0% attention. My consolidated financing are on a 30-yr spend plan and i spend $1500/day. Another one to We pay regarding $100/times.
My fresh plan was to pay-off only a small amount of loans once i is also, then save currency to own a downpayment having property. I’ve already got throughout the $100,one hundred thousand secured which will getting generous anywhere else, but My home is Ca, and you can sadly an everyday 3-4 room domestic in my area is mostly about $five-hundred,000-one million (Gilroy, online payday LA CA). Although not, in the morning We not so yes any further and you may I would like specific other opinions.
Package A beneficial (settling financing basic): Dump the $100,000 I’ve saved up into the loans, then aggressive pay it off (I estimate I could do it in
5 yrs or faster), after that begin more than from abrasion protecting right up to own a down-payment, that could take some other 5 yrs. We imagine getting property inside my area, I might need save up at least $140,100, most likely $two hundred,100000 could be a less dangerous bet. It’s completely a beneficial seller’s markets nowadays, numerous offers push the very last price above and beyond listing price.
Messerschmitts
–Masters: Over long term save a lot of money. If I eliminate my loans, then that’s also $1600/month I won’t have to pay and can afford a higher montly mortgage payment.
–Disadvantages: If I do this, then it’ll take
5 yrs to repay the fresh new money, some other 5 or so to build back-up a downpayment. Therefore, I am forty+ yrs . old whenever i fundamentally very own a house. If we have a young child the following year, they would have to inhabit good 900 sq . feet 2 rooms flat till many years 9 otherwise 10, even with a health care provider since a father. Kind of ghetto. What if i’ve dos children? Yes, eventually we could provides a bigger house or apartment with this tactic, however, every day life is short, as well as for an effective chunk of it, I have to live on because the an attending medical practitioner into the a two bedroom flat.
Plan B (get a property very first): Continue paying off my loans as slowly as humanly possible, and save up as much cash as I can until I hit around $150,000-200,000 in 4-5 yrs, then buy a 3-bdrm house hopefully in the 500-600,000 range with 30-40% down payment (to reduce monthly mortgage). I’m working for the County in an underserved community. I will try to apply for some loan forgiveness programmes that can pay off some small amounts (applications don’t start till the fall), but it’s not a guarantee.
–Advantages: my family and I get to enjoy a house in 4-5 yrs (ily, stop «throwing away money» into rent, start building home equity, etc.
–Disadvantage: End up paying a lot more money over the long term. Monthly income will be reduced for the rest of my «working life», 1600/month for loans + mortgage until I’m in my 60’s, instead of just paying mortgage. Thus, my «effective income» will be much less for most of my life.
