Should I pay off more than the minimum payment on my student loan debt or save for a down payment on

My wife %26amp; I are in our 30's with a baby and are ready to move out of our city apartment. We're not sure where to put our extra cash - debt or savings?

Should I pay off more than the minimum payment on my student loan debt or save for a down payment on a house?

Unquestionable, save the money for a down payment.

Having money down (at 95% or less) will usually represent in a lower mortgage interest rate.

There are other considerations, too. Student loans I believe are at a 4-6% rate once past deferrment, and they are tax deductible. You should be able to have an after market return on investments higher than this payment rate.

Mortgages are good, too. At 6-7%, you'll be building equity in a house, that you should be able to sell off at a profit sometime in the future. Not to mention, home equity loans are frequently the method that most people use to pay for little jr's college, someday.

Don't pay any higher than the debt service on either of these obligations. You'll typically do better financially being liquid and investing the money at a higher return elsewhere.

Should I pay off more than the minimum payment on my student loan debt or save for a down payment on a house?

it's probably a low - interest loan. You might be able to put that money to work for you rather than paying down debt.

Should I pay off more than the minimum payment on my student loan debt or save for a down payment on a house?

It only depends on the interest rate of the student loan and of the house. Use the money for the item that has the highest interest rate. I expect that your new mortgage will have a higher interest rate than your student loan, so save the money for the down payment to reduce the amount of mortgage you have.

Should I pay off more than the minimum payment on my student loan debt or save for a down payment on a house?

This is easy. Down payment on a house.

Should I pay off more than the minimum payment on my student loan debt or save for a down payment on a house?

Saving for a down payment is a great goal. However you must consider if you can afford a home mortgage AND the remaining payments on consumer debt. If you have not already done so contact your student loan servicing center and investigate the possibility of consolidating your student loans into one debt, generally this will lower the amount you are required to pay monthly.

Most lenders will supply you with a free pre-qualification worksheet. With their help you can determine how much of a mortgage you can afford and still qualify for a loan. Typically the loan officer that you are dealing with will then keep you abreast of any changes and assist you in your home ownership goals.