re: Question about debt reduction and deciding when to purchase home

As another poster indicated, I would be very hesitant to purchase a house right now.

With the possibility of a kid in the near future, I think you have to take into account the possibility in decreased earning power as one of you may need to stay home to be with the child. Plus, the extra variable expenses related to a 3rd mouth to feed and the array of other items for a child.

The only way I would consider buying in this scenario is if you can find a house that better fits your needs that does not increase your rent/mortgage very much.

If I were in your situation, I would be very scared of my 130k combined salary dropping to 70k on one persons shoulders, the addition of a mortgage higher than my previous rent, the addition of another family member, and the $1,400 you are locked into for SLs.

I also agree with tirebiter that I don't think housing prices will increase for probably another year or more, so I would stick to what you are doing now.

The kid decision is much more personal. It is always easier to finance your life without a child--but there ar also some joys associated to having kids that have no value.

I will eventually face a similar issue in about 5 years when I get an MBA. I'll have $100,000 in debt, no mortgage, and a wife that wants to have kids. It will be a tough decision.