Hi everyone, I am a 24 y.o. in Iowa with my SO who I am going to be getting married too in Sept. We have a little bit of a problem with her current student loans. Some are parent plus loans with extremely outrageous rates(7.9%). Well it looks like I have a idea unless someone can explain to me the cons of doing so. So back about 4.5 years ago we decided to buy a house after I graduated and got a job and she was still in school. My parents ended up buying the house due to credit and I have been paying on it. Well fast forward now and the house we bought for 137k is now completely renovated (My dad owns construction company and I worked in it all my life until college) and could probably be worth somewhere in the 200k range (according to realtor, price comps). So what I am asking is that is it smart to combine her outrageous student loans with a house loan seeing as I will be buying it for the current owed price but the appraisal will come back much higher. We have been together going on 8 years now and living together for 5 years. My credit is 740 average depending on credit karma and credit card free scores. Other than student loans and a car loan (2013 Volt, 13,000k owed at 2.9%, recently bought to stop with a gas guzzling truck) we are debt free.
A little breakdown
Loans:
Student: Unsubsidized- $14,500 @ 6.8%
Subsidized -$21,000 @ 3.4%
Perkin's Loan -$2,500 @ 5.0%
Parent Plus - $14,000 @ 7.9%
Car: 2013 Volt- $13,000 @ 2.9%
I pay balances in full on credit cards every month so no debt there. I do not have cable tv and we dont really like to watch it anyway
Current Salary's -
Me- I am a collision tech for a body shop so I am paid on commission rate. Last year I earned about 55k but I switched jobs from a horrible employer. I am currently set to make about 75k this year before taxes. I contribute 15% to my 401k and a additional 75 per week to vanguard IRA.
SO- Just started a new job that is hourly at 19.50 a hour but is only guaranteed at 32 hours a week (usually gets 40 but we will go with the guarantee) so lets call it 32k a year. She has her degree for dietetics but recently graduated.
If you need any more info let me know. I already can afford the house and she can already afford her student loans, just want to do whats most efficient. Our spending habits are not that of the typical 24 year olds and we already have our FIRE plan for age 40 give or take a few years for economy.
Thanks again and feel free to lay it on me if I am overlooking something