(Closed) Buying a house when you have student loans. Thoughts?

posted 7 years ago in Home
Post # 32
Member
674 posts
Busy bee
  • Wedding: February 2013

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@NAvery: You’re right. I just paid off my truck in December and I love not having a car payment… for the first time since I was 22 (10 years now). It’s great.

Post # 34
Member
2401 posts
Buzzing bee
  • Wedding: August 2012

We are building a house and we close at the end of July. I have student loan debt, DH does not. I know plenty of people who have purchased a home when they were still paying off student loans. I definitely did not want to put off buying a house just because I have student loan payments, although once we’re moved in we’re going to consolidate my loans so we can try to pay them off faster.

 

Post # 35
Member
722 posts
Busy bee
  • Wedding: June 2013

my student loan didn’t seem to affect us being approved for our mortgage. Maybe each state/company is different.

Post # 36
Member
2295 posts
Buzzing bee
  • Wedding: April 2013

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@As_You_Wish:  It certainly doesn’t make you a materialistic person! And I work from home too, so I definitely can relate.

Since your DH has gone through FPU, he has a lifetime membership that extends to you as his spouse. Would you consider going through the class (and maybe he’d go back with you again)? They just shortened it so it’s only 9 weeks and a little shorter in length each class session.

Ultimately, whatever you decide to do with buying a home, the number 1 important thing is that you and your DH agree and both feel good about your financial choices. You aren’t feeling good about staying in a small place. He isn’t feeling good about buying while still carrying student loan debt. Maybe there’s a 3rd option? But a BIG part of FPU is about creating a safe and structured way for you to get on the same page with your spouse and find solutions you’re both happy with. So that would be my suggestion!

DH (then FI) and I came out of FPU not agreeing with everything Dave Ramsey says. You don’t have to convert to his way of thinking, I’m not suggesting FPU because I think you should let your DH “win.” But we DID agree with each other because watching the videos and sitting in the discussions opened up the lines of communication about the topics. Agreeing with each other is more important than agreeing with anyone else.

Post # 37
Member
19 posts
Newbee
  • Wedding: June 2011

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@Bazinga:  Renting is not a waste of money. I’ve rented my entire life and it’s worked very well for me. It just depends on your perspective. I’ve never wanted to be tied down to one place. My husband owned a house while we dated but sold it after we got married and moved. We’re renting now- true, you don’t save money by renting but it’s worth it if you’re not sure you are living somewhere you want to stay for many years.

Post # 38
Member
19 posts
Newbee
  • Wedding: June 2011

This thread has been very interesting and helpful b/c we are considering buying a house in the next year. But I know it’s getting much harder than it used to be. I’m about to have school loans and we also have cc debt but I lease my car. Living in the city, we don’t use a car every day. Most people have debt it just depends on how manageable it is deemed to be. Frankly, I don’t think it’s possible to live in this day and age and not accrue SOME debt.

Post # 40
Member
2188 posts
Buzzing bee
  • Wedding: March 2024

@Mopsie1 That is your opinion and I gave mine. I personally feel like it’s a waste of money, why pay someone else’s mortgage when I can pay mine. I understand why you don’t buy but that doesn’t make me think renting is a good idea, I still think it’s a waste of money, but to each their own. You gotta do what works for you right?!

 

 

 

Post # 41
Member
885 posts
Busy bee
  • Wedding: July 2009

I suppose it depends on your income, but you really do not owe that much in student loans.  I own an apartment and a house and owe about the same you do in student loans from law school.  I have found that a mortgage is significantly less than rent.  You could get a FHA loan and only have to put 3.5 percent down.  

Post # 42
Member
199 posts
Blushing bee
  • Wedding: August 2013

Definitely no problem. We just closed on our home this week with a hefty of student loan debt.

Post # 43
Member
772 posts
Busy bee
  • Wedding: December 2011

I also don’t agree on the “renting is a waste of money” thing.  Renting can be much cheaper than mortgage, plus taxes, plus maintenance, plus home owners insurance etc.  It also lets you move in a down economy for a job. 

 

The reality is that the day you buy a house you are 6% underwater since that is what it would cost to hire a realtor to sell it. 

 

Buying a house is a great investment if you will stay put, and can afford the costs associated with it. But it is not the best decision in all cases. 

 

Edited to add that the home mortgage tax deduction is not always as substantial as people think it will be. 

Post # 44
Member
3657 posts
Sugar bee
  • Wedding: January 2000

@As_You_Wish:  I will provide the counter-voice to say: as much as student loans seem the norm to people, it is still debt. Mortgage is debt. NONE of it is good debt, debt and especially interest is The Enemy. You don’t feed The Enemy.

In the first years of your mortgage you will accrue so little equity that you are “throwing away mortgage money” just as you rare throwing away rent money. And if your housepayment is more than your rent, you truly will be tossing it away.

Mortage interest is a tax write off, yes. Do the math, see how much you would save. Not that much. Since you have no money for a down payment I will have to say that you can’t afford a house. Your Fiance sounds like a responsible guy, good for him!

Post # 45
Member
885 posts
Busy bee
  • Wedding: July 2009

justelope– I would agree with you that renting can be the best option for certain people, but if you can put a small down payment (enough to cover the reqs of a FHA loan), this is the time to buy.  Interest rates are very low compared to what they once were, and even with taxes and insurance (i suppose it depends on the market) a mortgage can be less than rent.  At least that has been my experience with our apartment in Miami and house in the Ft. Lauderdale area.  With that being said, you are totally right that buying ties you down and severely restricts your ability to move elsewhere.  

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