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blankusername666 OP t1_jef0uoe wrote

Reply to comment by Nuclear1975 in Pay off student loans in one go or buy a home with savings? by blankusername666

Get rid of it in one go before the interest freeze expires? Or pay it off monthly? And, would 10k would reasonably be enough of a down payment? It seems a little small to me, but I've never bought a home before so lol

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MahatmaAbbA t1_jef5slt wrote

You need 20% of the purchase price to avoid mortgage insurance. If you’ve got an exceptional mortgage rate, it might make sense to pay the mortgage insurance. Your lender would decide what $10k is enough of a down payment for a particular loan. Chances are pretty good they would not let you go below 5% of the purchase price for a down payment. In theory, you may have a down payment on a $200k house. Any other assets, credit, income, and whatever other made up metrics are also used to calculate your mortgage though. Technically, if the house appreciates in value faster than your loans grow; you should buy the house. Houses are mediocre investments, but a great way to save money. It may cost more to live in your own home. The money isn’t really gone like with renting. It’s in the value of the house.

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blankusername666 OP t1_jef8qr0 wrote

That makes sense. I have what my bank tells me is a 'very good' credit score, but I'm not sure if that matters lol. I also consider myself pretty thrifty, so saving some more wouldn't be too difficult for me.

But anyways, what you're saying is buying the home isn't a bad idea, even with my student loans?

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