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Financial Advice Needed

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Fuzzy09
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Financial Advice Needed  Reply with quote  

I am looking for some unbiased financial advice. Everyone I have gone to around me has their opinion on the matter and I really would like a strictly financial unbiased opinion...so here I am!

Some background:
Between myself and my spouse we are making a fairly good income. I am sitting at $100K/year and she is at about $50K/year. I am going to grad school (looking to start in August) and it will take me 1-2 years to finish my MBA and sit for the CPA exam. With that being said there is a good chance my employer will be paying for this so I am not too worried about the cost.

The problem is my $79K worth of student loan debt now. We have been talking and if we downgraded from our current home we would be able to stockpile some money (while deferring my student loans during grad school) and pay them off as I finish my MBA. But we have met with a realtor and she is saying we will only be able to sell our house for "X" amount which would result in a roughly $25K LOSS from the initial amount I put in.

The question I have for yall is it worth it to downgrade and stockpile money to get rid of all of our debt? Even though we may be taking an initial loss on the money we put in? Or tough through it for now, trying to save as much as possible? I have attached some financial information below.

Thank you for any help or feedback you can give.

Current Net Income: $2,087
Net Income in Apartment: $4,620
Net Income in Apartment deferring current loans: $5,339
*Net income is after all typical monthly expenses.

*Estimated payoff of student loans if saving $4,000/month is roughly 22 months or 1.83 years.
*Estimated payoff of student loans if saving $4,500/month is roughly 18 months or 1.5 years.
*Estimated payoff of student loans if saving $1,000/month is roughly 68 months or 5.67 years.
*If paid off all student loans under 2 years I would continue to save the same amount and have plenty enough to cover over 20% down for a new home at the 3 year mark.


Student Loan breakdown:
Total Amount owed: $78,736 at a 5.25% interest rate. Monthly payment is $719.

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Post Mon Feb 06, 2017 6:54 pm
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oldguy
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quote:
Current Net Income: $2,087
Net Income in Apartment: $4,620
Net Income in Apartment deferring current loans: $5,339


This infers that you bought a McMansion (>$500,000)? You are currently spending $45.000/year net for shelter, ie, about $63,000 of your $150k gross income. Maybe you could avoid the apt and downsize to house now? The sooner you get that $45,000 stopped the better. (Depends on your desired location, availability of housing,etc.)

As for saving for a 20% down payment - I never do that, when I 'm shopping for rental houses, I often get 3% 'Down" loans, sometimes an 85/15 carry-back you don't want to tie up your capital in a house if you don't need to.

quote:
*Estimated payoff of student loans if saving $4,000/month is roughly 22 months or 1.83 years. *Estimated payoff of student loans if saving $4,500/month is roughly 18 months or 1.5 years.
*Estimated payoff of student loans if saving $1,000/month is roughly 68 months or 5.67 years.


IMO you are working on the wrong problem. I would keep those 5.25% loans for full term.I always direct our income stream to its highest and best use. And that wouldn't include prepaying longterm 5.25% loans - instead retain the use of that capital and put it to work elsewhere. (I often borrow lumps sums on my houses and invest them.)
Post Mon Feb 06, 2017 10:00 pm
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stephenbrian
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Small Advice  Reply with quote  

You should look for some expert financial advisory then who could advice you wisely. Like, UK assignment writing services always gives the right and great solutions to their students.
Post Fri Feb 10, 2017 7:31 am
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yotux
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Make a plan  Reply with quote  

I am confused need more information. Are you saying that you currently have a house? Are you looking to buy a new home or a second home?
Post Sat Feb 25, 2017 7:28 pm
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