Looking to buy a home while carrying student debt? Here’s the difference between making a low down payment and putting 20% down.
The decision to become a homeowner is likely to be the biggest financial commitment you’ll make, and many factors should be taken into account.
First, let’s tackle whether it makes sense to become a homeowner. Writing a monthly rent check can seem like throwing away money, but piling mortgage debt on top of student loans can create a long-term budget crunch.
“With student loan debt, your asset is your education and no one can take that anyway,” said Certified Financial Planner Travis Sollinger at Fort Pitt Capital Group. “But if you buy a house and you can’t afford the payments, they will take the house.”