I have $15K saved for a house. Should I pay off my student loan or keep my $ for a house downpayment

I'd like to buy a house soon(by 2007). I live in New England so house prices are crazy, probably run around $150K for a condo. I owe $60.00 a month on my student loan for 6 years at 4.89%(variable every June). Do I give myself an extra $60 a month for a mortgage payment and lower the total credit I'm using, though having less for a downpayment? Or do I put the most money possible for my home downpayment and keep my student loan for 6 more years?

Thanks everyone.

I have $15K saved for a house. Should I pay off my student loan or keep my $ for a house downpayment?

the 4.89% you have on your student loan is unbelievably low. If you pay that off and then take out a mtg for the same amount you'll be paying at least 6.68% (check Bank of Am. current rates) so it would be a much higher payment. Also banks will lower your interest rate the MORE you put down. There is also this thing called PMI it's the banks insurance payment that you pay to help cover their costs if they get stiffed. If you can put down a 20% down payment then there is no PMI. On a 150,000 loan PMI is going to be around 175 or more per month. so put your 10% (15,000)towards buying a house, make your student loan payments on time (great credit ref!) because if you pay it off then they will stop reporting and you will lose that %26quot;open line%26quot;. after a couple years have your condo appraised if the current loan amount is 78% of the appraise value no more PMI. THEN double your student loan payment if it bothers you to owe money.

I have $15K saved for a house. Should I pay off my student loan or keep my $ for a house downpayment?

I would say that you should payoff your loan. You will have a lower rate if you debts are not payed off.

I have $15K saved for a house. Should I pay off my student loan or keep my $ for a house downpayment?

If you can afford it and plan to stay in it for a few years, definitely get the house. There may be a slight drop in the near term housing prices, but they'll recover. In the mean time, you've gotten in on Uncle Sam's most favored investment.

I have $15K saved for a house. Should I pay off my student loan or keep my $ for a house downpayment?

What you should do is take out a 100% mortgage and pay off your student loan.

I have $15K saved for a house. Should I pay off my student loan or keep my $ for a house downpayment?

First thing you should do is talk to a mortgage broker. They will tell you what to pay off or not payoff. Ask someone who you know that has already been through the process for a name. There are some with state insured loan programs for 1st timers.

I have $15K saved for a house. Should I pay off my student loan or keep my $ for a house downpayment?

Get the house and put your loans on deferment or foreberance once you obtain the home. Its easy and you went to college I am sure you can give a good excuse why!