I'm a medial professional who has been in an epic battle to pay down my loans for the past 3 years. Starting principle balance: $92,000 @ approx 6% interest. Current principle balance: $19,000 @ approx 3% interest.
My minimum payment on these loans is currently $100 per month. Currently they are costing me about $50 bucks per month in interest. I have no other debt. Income is 60K+ per year. My partner has a slightly lower salary, but would realistically be able to contribute $650 to the mortgage payment in addition to sharing bills.
I have been hell bent on just paying these things off. However, I am also 33 and life is happening around me. I see myself in staying in one place for a long time. Happy in my location, happy in my job, happy in my relationship. Looking at the numbers I'm starting to think that just killing the loans may not be the wisest decision, as our split rent is $1250 per month.
I'm starting to consider letting these loans ride a little more now that the interest is low in order to buy a house. Current mortgage rates are good, and I'm thinking I should start shoveling all that cash into a savings for a downpayment instead. I might have enough for a 3-5% downpayment in addition to my already ~8k in emergency savings (which I plan on keeping) in a few months.
Just looking for a sounding board on this - has anyone been in a similar situation and made the call to get a house? All feedback is welcome :)
PS I know private mortgage insurance sucks, but it seems it would still be cheaper than renting if I'm staying in once place for a while!