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Buy a home or payoff student loans?

I'm looking for advice on whether to buy a home or payoff student loans, especially considering how low mortgages rates are right now and the trend upward in home prices. I have about $50k in student loans with a 6.5% interest rate over a 10 yr term. I'm curious what makes the most financial sense taking into account increasing home prices (projected at 8% over the next year in my neighborhood), tax benefits of owning a home, and the current real estate market. I also need to consider the fact that I'll pay thousands of dollars in interest on student loans if I just pay the minimum payments. I'd also like to know if there are tools out there (i.e. calculator) where I can compare the two. Thanks!
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March 05 2013 - Belmont Heights
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Answers (3)

I'm not a financial advisor, and I would definitely reccomend you speak with one regarding your particular financial needs -- however I do know that paying off student loans and lowering your overall debt-to-income ratio will often help a buyer's purchasing power. Which could mean you may be able to qualify for more or get a better rate. 
This is a great question to ask your lender. 
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November 13 2013

Student loans never go away and remember the more you defer them the more interest they accrue.  Great advice by Andy a CPA could certainly help you weigh the pro's and cons.  Good luck

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March 05 2013

Ryan,
Go to bankrate.com/calculators.aspx You'll find a variety of financial calculators that let you work through the scenarios. You may want to consider working with a CPA or financial advisor to break down the two options into dollar amounts.

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March 05 2013
 
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