i’m 24 and currently have $27,000 in my savings and owe $27,400 on my car. i drive a 2025 honda crv hybrid sport L and my monthly payment is $602 at a 5 something percent interest rate. I’ve had the car for just over a year.
i also have $30,000 worth of work turned in that is being paid out to me at $3k – $6k every two weeks + continuing to work and make more money as it gets paid out, so being left with no savings will be very short term + have credit cards.
i am currently renting a room at a family members house for $550 and it’s great in terms of price but it’s honestly stressful here and i’ve wanted to move out for a while as they have a baby and a dog that constantly barks. it’s awkward even cooking food for myself in their kitchen and sharing space and i can barely sleep.
do I just keep living here and wait for the other $30k to be paid out and use the $55k+ to look for a mortgage loan or should I pay my car off to rid myself of a $602 monthly payment and move out and get like a studio or something for $1k – $1.3k?
Pay my car off and get apartment or thug it out and get a mortgage loan?
byu/SpadeBlade_6193 inpersonalfinance
Posted by SpadeBlade_6193
3 Comments
I don’t know about everybody else, but I think you should just deal with the minor inconvenience of the APARTMENT, and perhaps pay a portion of the car off rather than the entire balance, because I think that lowers your interest, no? And then pay off the principal with extra payments, but leave just enough for you to get by in case of emergencies
Pay off car + apartment.
It’s unclear what your annual salary/wages are, or whether your job is stable employment? Those factors weigh into whether you’ll qualify for a mortgage loan. What kind of house are you trying to buy, have you searched your local area?
Homeownership is expensive. I’d focus on moving out of your current housing ASAP. Save your money for apartment moving costs, new furniture, etc.
You have money coming in for the **short term**.
Mortgages are for people who have stable employment in the **long term**.
Mortgage + Insurance + Taxes + Home Repair + Utilities have to be paid every year, year after year. I would assess what your future employment and income will be like before even considering buying a house.