I individual a substantial amount of medical college or university loans, on $240,one hundred thousand inside the consolidated Stafford fund during the six

Enjoys an MD from inside the Horribleness

• #23

Lose the latest $100,100000 I’ve saved up to the finance, following aggressive pay it back (We guess I’m able to exercise in

My trouble so is this: Like any anyone I would like to individual a property, preferrably a bit which millennium prior to I am old and you can decripit. I am 31 yrs old, and you may I would ike to individual a house before I am 40 yrs old. Who would just generate be extremely unfortunate, eventually purchasing a home at years forty-five or something. My wife and i try getting a young child as well, thus having a home was just the thing for you to definitely. (Wife currently planning college in order to become an oral assistant, she won’t be able so you can lead far money)

$20,one hundred thousand during the dos.0% attract. My personal consolidated fund are presently into the a 30-yr pay plan and i also shell out $1500/times. One other that I shell out on $100/month.

My brand new package would be to pay back only a small amount of loans while i can be, next save currency having a down-payment to own a home. I have currently got from the $100,one hundred thousand saved up which would be generous anywhere else, however, I reside in Ca, and you may sadly a normal 3-cuatro bedroom household during my town is focused on $500,000-1 million (Gilroy, CA). Yet not, am I not very yes any more and I would like certain other opinions.

5 yrs or quicker), next begin more away from scrape rescuing upwards having a downpayment, which may need various other 5 yrs. We estimate to own a home in my own town, I would personally need save no less than $140,one hundred thousand, most likely $two hundred,one hundred thousand would be a less dangerous bet. It is totally good seller’s industry today, several bids drive the very last speed above and beyond record price.

–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.
–Downsides: If I do this, then it’ll take

5 yrs to repay the brand new fund, various other 5 approximately to construct back up a downpayment. Hence, I’ll be 40+ yrs old while i ultimately very own a property. When we have a kid next year, she or he would have to are now living in good 900 sq . ft 2 rooms apartment right until age nine otherwise 10, even with a doctor just like the a dad. Brand of ghetto. Imagine if i’ve 2 children? Sure, in the course of time we could keeps a larger house or apartment with this tactic, however, life is small, as well as a amount of it, I have to call home as the a going to doctor inside the a 2 bed room flat.

Plan B (pick property 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.
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–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.