SharpeRatio said: I should open a school on reading comprehension.
How about opening a school on answering questions the first (or second) time they're asked...? How much are you looking to spend? That is fundamental to answering question #s 1, 3, and 4. For those keeping score, that's the third time it's been asked, and it might be the last because a lot of people don't appreciate this kind of snark from someone asking for advice.
Question #2...All the monthly payment savings come from recasting the remaining loan into a new 60-month term. If you have to do that to afford to do what you want to do, you can't afford to do what you want to do.
taylor0987 said: How much are you looking to spend on a house? ... I saw in your old thread that you were previously used something to say you could afford $260k. I think that's way too much. Give us an idea so we can give a better answer.
Me personally, I'd get the student loans paid off first. A car loan at 1.99% isn't something to hurry up and pay off, but the 5.1% interest rate that can't be discharged in BK matters more.
Suggested course of action:
1.) Do not refinance car loan. Just pay it off as scheduled. 2.) Pay off student debt before buying home. 3.) Come up with 20% down and do a conforming mortgage. 25% down if you are buying a condo. (The last 5% of financing on a condo works out to 8-9% interest) 4.) If your city/neighborhood offers it, look into a mortgage credit certificate for a tax credit equal to 20% of your interest. 5.) You will need another 2-3% of the home's purchase price for closing costs. Most lenders also want to see two months of expenses in savings. Personally I recommend 8.
I estimate that you really want to save another $30K at a minimum before buying this home.
IlliniProgrammer said: 1.) Do not refinance car loan. Just pay it off as scheduled. 2.) Pay off student debt before buying home. If he is paying 5.1% on student loan and can refi car loan to 2.24%, maybe he should do the car loan refi and aggressively payoff the student loan and then the car loan. This is assuming there are no significant refi costs and ignoring possible tax deduction for student loan rates.
ETA: Generally agree with your suggestion to pay off loans, accumulate a good savings to cover 20% downpayment (and some more) before buying a house.
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