Debt free or house down payment with raise?

[richdog22]

Debt Free first.
6-9 month Emergency fund 2nd.
Down payment 3rd.

This.

 

[DisgruntledVirus]

I'd probably take the help on the loans. Take 6 months and go ahead and get that paid down, while you really take the time to be sure a house is what you want to do. I'm sure it is, I only tolerated apartment living for a year before I bought my house, but it takes more than a few days to truly do your homework. Make sure you're happy at your job, expect to be happy there for 3 years at least, make sure there are houses you'd actually want to buy in a price range you're comfortable paying, get your credit in order, then once all that is done wait another month or two before you actually make the commitment.


There's no need to rush. You're young, single, make good money, the world is your oyster.

Well if I'm going to be looking for a house I would be saving every penny I could for the down payment as this wasn't something I was planning to do, or even thought about doing until things at work made me pretty confident in being at this job for 2-3 more years minimum. So it's either put money towards loans (and not be able to pay off any except one $50/mo loan) or save for the down payment.

I've spent the past few days just looking at houses in my price range to see what kind of houses are available for that price. And from that it looks like I'm going to have a hard time finding what I want in a house, but it is possible. Most of the houses in that price range, within 20 minutes of work, are in an area of town that I'm not huge on personally. The alternative is to look at condo/townhome type places which I've already found a few that I like and are in the price range and location I want. But then it's shared walls again (even if just one side and individual entrances and such which is one issue with apartments).

I think I might see if I can get the family help to pay off two of the loans which would free up $200/mo and remove about 15k in debt. With the rough dollar amount they offered to help then could pad my down payment and should be able to avoid PMI. Either way, time to start socking money away and as much of it as I can.

 

[Murloc]

shared walls = you can hear your incontinent neighbour flushing 5 times a night.

 

[Red Squirrel]

Actually, if living in an apartment now, it does make sense to buy a house... you have to pay rent anyway. May as well be paying a mortgage instead. At least the money is going towards something and building equity. I'd even go with like a 40 year mortgage to minimize the payments as much as possible, then by the time the debt is paid it should be close to when the mortgage opens, then just refinance as a 25 year. I never been through the "open" stage yet, but I assume that's possible to do.

 

[yh125d]

Well if I'm going to be looking for a house I would be saving every penny I could for the down payment as this wasn't something I was planning to do, or even thought about doing until things at work made me pretty confident in being at this job for 2-3 more years minimum. So it's either put money towards loans (and not be able to pay off any except one $50/mo loan) or save for the down payment.

I've spent the past few days just looking at houses in my price range to see what kind of houses are available for that price. And from that it looks like I'm going to have a hard time finding what I want in a house, but it is possible. Most of the houses in that price range, within 20 minutes of work, are in an area of town that I'm not huge on personally. The alternative is to look at condo/townhome type places which I've already found a few that I like and are in the price range and location I want. But then it's shared walls again (even if just one side and individual entrances and such which is one issue with apartments).

I think I might see if I can get the family help to pay off two of the loans which would free up $200/mo and remove about 15k in debt. With the rough dollar amount they offered to help then could pad my down payment and should be able to avoid PMI. Either way, time to start socking money away and as much of it as I can.

I'd strongly suggest joining a credit union soon, even if you don't wind up buying in the near term. That's how I got a 0% down no PMI mortgage at age 21. Ask if any family is in one

 

[Red Squirrel]

Yeah getting a mortgage at a credit union or bank you've been at for a long time will be much easier than just showing up at one for a mortgage. Get a CC under the same institution as well. I recommend a CU over banks since you are supporting local business instead of multi billion dollar corporations that outsource everything overseas. Better rates and better service too.

 

[DisgruntledVirus]

I'd strongly suggest joining a credit union soon, even if you don't wind up buying in the near term. That's how I got a 0% down no PMI mortgage at age 21. Ask if any family is in one

Yeah getting a mortgage at a credit union or bank you've been at for a long time will be much easier than just showing up at one for a mortgage. Get a CC under the same institution as well. I recommend a CU over banks since you are supporting local business instead of multi billion dollar corporations that outsource everything overseas. Better rates and better service too.

I've had a CU since I was 18. I go to them first on everything. Financed 2 cars through them, had another personal loan through them, and have had a CC through them for almost 10 years now. I don't want to bank at anyplace else honestly (outside of the ATM's being limited and mine doesn't refund those fees).

They will be the first place I go for a home loan as well, however I will check others as well.