A Reddit user is contemplating buying a home while grappling with student loan debt. With $85,000 already saved and a student loan of $30,000 at 2.7% interest, he considers paying off the loan to improve his debt-to-income ratio. However, experts suggest that keeping the loan could be more advantageous given its low interest rate and potential tax benefits. Many commenters proposed that he should invest his funds in a larger down payment for his future home instead, as mortgage rates are expected to rise.
Repaying a student loan at a low interest rate, like 2.7%, is generally not a good idea, as keeping that debt can be financially beneficial.
It's often smarter to focus on making a larger down payment on a house rather than paying off low-interest student loans before home buying.
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