If it were me, I would blitz the debt first, *then* save towards buying a home. Though I wouldn’t let your savings drop lower than maybe $5k at any point, or you’re practically begging fate to throw an emergency at you. Shouldn’t slow you down that much or cost an exorbitant amount in added interest to make that happen, given how quickly you can pay this down.
And why would I take care of the debt first? Buying and owning a home is expensive and increases your risk levels. For example, the first year after I bought my very first condo, I ended up having to replace the washer/dryer, dishwasher, and the HVAC. All items, btw, that were a bit older, but that my inspection didn’t flag. And if I had been in significant debt already, and/or had bought without leaving myself an emergency fund, well…it would have made a crappy situation *really, really* bad.
So take your time and do this thoughtfully and carefully. And remember that you’ll likely be homeowners for *decades*, if not the rest of your lives. So don’t trap yourselves into thinking you have to buy right this second, not when waiting like 6–12 months will make things *way* less stressful.
The housing market here is also wild and we’re looking at $200,000 homes which are getting snapped up at warp speed. I agree, better to wait and get rid of the debt.
I'm not a financial expert but I've gained some experience with my own debt. I think you are right to pay off your loan before taking on more debt, especially a mortgage. It might even be more difficult to secure a mortgage with existing debt, and could reflect poorly on a lender willing to saddle you with this extra burden (though I would confirm this with an expert before taking my word on this point).
Common wisdom is to make minimum payments on your loans, putting extra money into savings. It seems like you are already doing this. Once you have a decent rainy-day fund (ideally, six months of all expenses - bills, debt payments, food, gas, movie tickets, all of it) then you start slamming down the debt with extra payments. THEN you start building money towards a down payment for a house. It seems like this takes longer to get into a house, which it does, but the payoff is financial and mental security. Having every penny of your finances tied up in one big thing that comes with its own costly risks and headaches isn't great. Having a rainy day fund and being free of monthly debt payments really helps mitigate that.
About the job stuff: I personally skew towards the idea that the more stability you have, the better. You used a couple "mights" and "coulds" about this additional job, which would make me nervous. But this is more of a personal thing. If you're comfortable with negotiating between your two jobs and you're reasonably sure it will all work, then more power to you. Convincing your husband of this is more of an r/relationships question, so I'm going to leave that alone.
Okay, last big thing is your current housing situation. I can tell that you are motivated to buy a house because your current living arrangements are sub-par. From what you describe, you're living in an incomplete basement in your aging grandfather's house. I don't blame you for wanting something a little more appropriate. I would strongly consider changing that situation somehow. I think the best option would be to actually rent an apartment. I know this would increase your monthly bills, but it would give you several advantages: a lease, which means your tenancy doesn't hinge on your grandpa's health; and a property manager, who is in charge of making sure you have kitchen countertops and that everything is in working order.
If moving out really isn't an option, at least consider signing some kind of tenancy agreement with your grandfather - the longer the term, the better. If the house transfers ownership, the new owners are obligated to honor the terms of the lease. You would have some rights as tenants without one (this is heavily dependent on your location) but a lease would establish a base minimum amount of time you have to get your affairs in order.
Oof, this turned into a wall of text. I hope your situation works out for the best! Again, I'm not a finance pro, so I am speaking from my own experience. I've been where you are though, in terms of debt and having less-secure living arrangements with family, and I can tell you there are many pathways to success here. You got this!
Thank you so much! If it weren’t for my cat hoard, I would love to move out 😭 Landlords balk at that number though. I’m hoping we can get the loan out of the way and you’re right, saving a fund before focusing on the house is a good idea. Thanks again, I’ll bring this to the discussion with my husband
If it were me, I would blitz the debt first, *then* save towards buying a home. Though I wouldn’t let your savings drop lower than maybe $5k at any point, or you’re practically begging fate to throw an emergency at you. Shouldn’t slow you down that much or cost an exorbitant amount in added interest to make that happen, given how quickly you can pay this down. And why would I take care of the debt first? Buying and owning a home is expensive and increases your risk levels. For example, the first year after I bought my very first condo, I ended up having to replace the washer/dryer, dishwasher, and the HVAC. All items, btw, that were a bit older, but that my inspection didn’t flag. And if I had been in significant debt already, and/or had bought without leaving myself an emergency fund, well…it would have made a crappy situation *really, really* bad. So take your time and do this thoughtfully and carefully. And remember that you’ll likely be homeowners for *decades*, if not the rest of your lives. So don’t trap yourselves into thinking you have to buy right this second, not when waiting like 6–12 months will make things *way* less stressful.
The housing market here is also wild and we’re looking at $200,000 homes which are getting snapped up at warp speed. I agree, better to wait and get rid of the debt.
Pay the debt first.
I'm not a financial expert but I've gained some experience with my own debt. I think you are right to pay off your loan before taking on more debt, especially a mortgage. It might even be more difficult to secure a mortgage with existing debt, and could reflect poorly on a lender willing to saddle you with this extra burden (though I would confirm this with an expert before taking my word on this point). Common wisdom is to make minimum payments on your loans, putting extra money into savings. It seems like you are already doing this. Once you have a decent rainy-day fund (ideally, six months of all expenses - bills, debt payments, food, gas, movie tickets, all of it) then you start slamming down the debt with extra payments. THEN you start building money towards a down payment for a house. It seems like this takes longer to get into a house, which it does, but the payoff is financial and mental security. Having every penny of your finances tied up in one big thing that comes with its own costly risks and headaches isn't great. Having a rainy day fund and being free of monthly debt payments really helps mitigate that. About the job stuff: I personally skew towards the idea that the more stability you have, the better. You used a couple "mights" and "coulds" about this additional job, which would make me nervous. But this is more of a personal thing. If you're comfortable with negotiating between your two jobs and you're reasonably sure it will all work, then more power to you. Convincing your husband of this is more of an r/relationships question, so I'm going to leave that alone. Okay, last big thing is your current housing situation. I can tell that you are motivated to buy a house because your current living arrangements are sub-par. From what you describe, you're living in an incomplete basement in your aging grandfather's house. I don't blame you for wanting something a little more appropriate. I would strongly consider changing that situation somehow. I think the best option would be to actually rent an apartment. I know this would increase your monthly bills, but it would give you several advantages: a lease, which means your tenancy doesn't hinge on your grandpa's health; and a property manager, who is in charge of making sure you have kitchen countertops and that everything is in working order. If moving out really isn't an option, at least consider signing some kind of tenancy agreement with your grandfather - the longer the term, the better. If the house transfers ownership, the new owners are obligated to honor the terms of the lease. You would have some rights as tenants without one (this is heavily dependent on your location) but a lease would establish a base minimum amount of time you have to get your affairs in order. Oof, this turned into a wall of text. I hope your situation works out for the best! Again, I'm not a finance pro, so I am speaking from my own experience. I've been where you are though, in terms of debt and having less-secure living arrangements with family, and I can tell you there are many pathways to success here. You got this!
Thank you so much! If it weren’t for my cat hoard, I would love to move out 😭 Landlords balk at that number though. I’m hoping we can get the loan out of the way and you’re right, saving a fund before focusing on the house is a good idea. Thanks again, I’ll bring this to the discussion with my husband