Living on 45-50k, 30k in taxes, the 40-50k on loans, Things are already tight, and we live in a place that we'll soon outgrow. I'm really trying to find the middle ground between the dave ramsey "get completely out of debt before you buy a house plan" and the devil on my shoulder screaming at me to take advantage of this market and these rates.

I think I'm willing to pay on the student loans for another year or so if it means I'm living in a nice house that's large enough for the fam. Keep the suggestions coming!

Also, any specific ideas about down payment for a house, and how to go about saving up for that while trying to pay down the debt. Is the difference in interest rate with a large down payment worth slowing down debt reduction? TIA

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Posted by GulfCoastPoke

Port of Indecision

Member since Feb 2011

1087 posts

Posted on 5/11/11 at 9:01 am to Costanza

170k in loans is a load man. Dave Ramsey's advice is good for a lot of people, but doesn't always makes sense for everyone. If I were in your position: If I felt like the jobs are secure to very secure, then I would maybe consider buying a house. But, on the flip side, imagine what would happen if one of you lost your jobs, got in an accident, had medical issues, etc. Interest rates and home prices are at an all time low and waiting to be snatched up, but if I were in your shoes...and potential upside to snatching up a bargain would be outweighed by the possible negative scenarios involved with having an existing heavy debt load at 6+%...and then putting a house note on top of that. That is just my $0.02.

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Posted by BlackenedOut

The Big Sleazy

Member since Feb 2011

5813 posts

Posted on 5/11/11 at 10:25 am to Costanza

Costanza,

Am in your boat, basically. Buy the house.

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