Greetings!
This is my first post to the forum. I found MMM about a month ago and have begun to reorganize my life around many of the principals of mustachianism. I was wondering if I could ask for some advice?
We currently live in Tanzania and have been overseas for 6 years. I just turned 31, and we have a combined net worth of about $116,000 which includes $20,000 in student loan debt at 5.875%. Monthly payments are $606. No other debt.
We have about $70,000 is VASGX Vanguard account and about $60,000 in cash. We don't have a 401(k) or IRA accounts because of tax laws regarding US citizens earning their money abroad. About $20,000 of that cash is earmarked for my wife's upcoming graduate degree.
My SO and I would like to purchase our first home when we return to the United States in June 2015. We're looking for a small two-bedroom in Baltimore city (lived there prior to moving overseas) and would like to spend less than $175,000, including any renovations that must be made.
Here is my question:
1. Should I pay-off my student loans in one fell swoop or save the cash for a significant down payment on our first home?
If we factor in our earnings between now and June 2015, this is essentially a question between a $40,000 down payment with $0 student loans VS a $60,000 down payment with $600 monthly student loan payment.
Thoughts or advice would be incredibly appreciated.
Cheers