Hey everyone, longtime lurker, throwaway account. TLDR at bottom.
Now, I know I need a real financial advisor to help with a lot of these questions but I want to know what people who have had more experience and have thought more about these matters think.
I’m early 30s, married with 2 kids under 5. Wife is SAHM, combined we have about 250k student loans @ 6.8%. Currently we rent because I’m in training/schooling, about to get my first real job and moving to a city we are both familiar with so we know the parts of town and where we want to move. It’s relatively low cost of living large city in the southeast.
Next year is my first “real job”, around 300k/year some small bonus structure (1 month pay max). Do not expect salary to drastically change, will go up every few years but probably never over 400k even at end of career unless I go into administration. We are also lucky that we have around 1 million in low-mid risk investments (mutual funds mainly, managed by large company) from our families. We also have around 50k in checking/ savings as liquidity. We’ve used the investment money through schooling and training to live more comfortably, and had deferred any decisions about paying back student debt until we were settled after our prolonged adolescence through higher education.
My wife and I want to be smart with money and want to maximize our own retirement funds and savings while putting as much into 529s for kids as possible now that I have a real job. We’d been planning to probably refinance to 4.5% and pay off 250k student loans in 5-10 years.
We don’t feel like we need a big fancy house, we are looking to spend 350-450k.
Does it make sense to just buy a house outright using money from investment funds? We would then put money that would have gone to mortgage into retirement/ kids educational funds? Or should we not touch money in investments, and take out mortgage and pay back over 10-15 yrs? Or is there a third path I don’t know about?
TLDR: 30s, 2 kids, 300k income, 250k debt, 1 m investments (stocks, mutual funds), want 350-450k house. Should we outright buy or take out mortgage?
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