I have a goal to buy a house. I would have liked it to be Jun 2026 but I think it has to be 2027.

    Ive got a $20k car loan at 4.5% and $46k in student loans ranging from 2.5%-5.5%.

    I have $10k in emergency savings 3.5% account. ~$55k in 401k and employer does an automatic 10% contribution no match required(I don’t contribute beyond that yet).

    I got a raise and net $8k/mo. Im budgeted to save $4k/mo after rent+utils, food+gas, disposable, and minimum payments on student loans($550/mo) and car($600 but I actually pay $700)

    So:

    A) should I be insanely aggressive on student loans and pay an extra $3k a month to them(3550 total). That would allow me to pay off in 13 months or so, and still save an extra $13k saved by the end of that… then from there I have $4.5k a month to save with only a car loan, which would be around $12k left at that point.

    B) do I have any freedom to afford being dumb. I.e save $20k through May, buy a house at ~$250k 5% down leaving me with maybe $15k savings. Also (with how my partner and I would split) increasing expenses by like $1k/mo. Then from that point save $1k/mo and pay $2k extra ($2500) to student loans.

    C) option B but take out a 401k loan for the down payment instead, and automatic employer contribution would pay that back in about a year. Leaving me with $30k emergency and continuing saving $1k/mo(would go into market) and paying $2500 to loans

    Student loan early payoff advice vs buying a house
    byu/wizardent420 inpersonalfinance



    Posted by wizardent420

    5 Comments

    1. Super_Series_6049 on

      Id keep making the due monthly payments on student loans and car and id start investing (roth, 401k, hsa, brokerage). I started doing that when I started working full time at 26.5 and at 34.5 I hit $520k networth. If you dont need a house, dont lock a down-payment and sink closing costs into a slow growthing asset this early.

      Good luck!

    2. CompetitiveAd1226 on

      I think none of these options to be honest. You’re in a good spot right now.

      No need to chuck tons of money at the student loans assuming the interest rate is around 3.5%. Go min payments and let inflation reduce the burden for you over 10 years.

      If anything go aggressive on your depreciating asset, the car. Then use you new liquidity to save for a ~10% down payment for a house.

      Get rid of this arbitrary goal of getting one in 12-24 months

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