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Balancing SL debt with down payment savings


Balancing SL debt with down payment savings

Hoping for some community wisdom here - biglaw lawyer 5 years out of law school with $299k in remaining student loan debt. Husband has $60k. We've been throwing as much as we reasonably feel we can at it each month (~$5k / month), but are also trying to move out of our tiny apartment and buy our first home. Given housing prices in our area and my insane work schedule (proximity is key), we're trying to save ~$200k for a down payment. We have about $105k in savings at the moment - it's slow-going, but we've put all bonuses and ~$3k/month in savings.


I just refinanced my SLs to a great interest rate (3.74%, 7 year repayment term), and we're looking to refi his too, but are unsure of how to balance paying his off with continuing to save. I think we have a few options:


#1--refinance his loans and keep our same split saving / payoff approach, with the goal of 7 years being out from under them

#2--throw $60k of our savings to wipe out his SLs completely, then using that money to slowly rebuild the savings (this likely extends the timeline for homebuying)

#3--throw $30k of savings to pay down half of his debt, and refinance the other half

#4--throw $30-60k at my loans (given their size and impact on interest payments), then proceed with option 1


Given those options, any thoughts on the best approach? Any other options we haven't considered? Not really worried about impact on credit score etc with HPs, given we both have scores >800. Thx all.

FICO8 August 2019 805 (TU) 802 (EQ)
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Valued Member

Re: Balancing SL debt with down payment savings

Pay off his loan, then roll what you where paying on that into yours.


I really would advise paying off your SL before you buy a house - based on what you've said, you could have it paid down in no more than 2/3 years.

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FICO8 @ 9/4/19 Ex 757 Eq 775 TU 748

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