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Updated over 8 years ago on . Most recent reply

User Stats

15
Posts
9
Votes
Syed Hussain
  • Laurel, MD
9
Votes |
15
Posts

save for down payment or pay off debt

Syed Hussain
  • Laurel, MD
Posted

Hello community.  Had a question I've been wracking my brain over for a few weeks and would love your input.  I have about $15,000 saved up for a down payment and have determined I'll need about $25,000 to afford a down payment with reserves for the type of homes I'm targeting.  

I also have 2 student loans at 4% with a total balance of about $30,000 remaining.  I would love to get rid of this debt before I start investing in buy and hold properties.  I know it's not a requirement but it's more of a psychological feeling.  But I can also just make minimum payments on the loans and save up my needed down payment in about 16-18 months.  

Should I just use my savings to get rid of my debt super fast and start saving from ground zero or should I just leave my debt alone and focus on my down payment?  Or should I stay on my current slow and steady approach of saving a set amount and applying extra payments towards my loan each month? I know there is no right answer, but what would you guys suggest?  Have any of you been in a similar situation?  Would love some feedback.  Thanks!

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