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Need advice on paying off Student Loan vs Mortgage

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  • Need advice on paying off Student Loan vs Mortgage

    Hello Everyone,

    I am new to WCI. I am a new attending, for approximately 10 months now. I make approximately 320,000 gross income. I do have $5,000 of credit card debt monthly on expenses, trips and such, and take-home approximately 12-16,000 monthly depending if I moonlight. My main question is I am trying to pay off my mortgage and my student loans. Last year I refinanced my loans which are currently approximately $325,000 at 3.35%. Currently paying 3500 a month, 10-year loan. I did not move after residency and currently and living in my home which is 250,000, but worth around 450K currently, and we refinanced this recently to 2.591% from 3.875%. Currently paying 2200 a month, for a 15-year. I have been speaking with a friend who recommends the Dave Ramsey approach to do student loans first before mortgage, but my loans are more and if I accidentally die, my wife is not cosigned on this so she would not accrue this debt, which is my understanding. I do have disability insurance and live insurance.


    Would it be more beneficial to pay of my student loans first or pay my mortgage first? Would you recommend paying the student loans because the interest rate is higher or the mortgage, because I could pay down the house faster and will feel some joy when I can have that paid off.

    Thanks for all suggestions!

    Wrote with Dragon so I may have some errors!

  • #2
    Student loans. No question.

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    • #3
      Another vote for student loans

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      • #4
        Student loans. You can't sell them if you come on hard times.

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        • #5
          Student loans. You can sell your house, you can't sell your student loans.

          Also, do you really "need" $5000 of monthly credit card bills? If you even trimmed a little off of those expenses, you could pay down your student loans faster and have even more fun money for longer.

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          • #6
            You'll feel better paying off your student loans vs. your mortgage.

            Comment


            • #7
              you'll find most posters here do not believe the Dave Ramsey baby steps/philosophy applies to doctors' general financial journey/situation. I tend to agree.

              When you mention the credit card, are you actually carrying a credit card balance over each month so you are hit with a 20%+ interest rate? You need to clean up that emergency today (and I suspect you can) and never do that again.

              you want to attack the student loans. Really, what's the probability that you're going to die in the next 10 years? obviously you want life insurance but this thinking that well the student loan dies if I die isn't the right way to think about this

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              • #8
                Make sure you max retirement/tax advantaged accounts before paying extra to your student loans. But yes, student loans > mortgage.

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                • #9
                  Student loans. No question.
                  And 5k credit card is a bit much for only you and wife. Remember live like resident for first 5 years as an attending. You’ll thank yourself in 5 years

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                  • #10
                    Thread locked until original poster returns to the forum.

                    Original poster, please private message me or any of the other forum moderators to let us know you want to engage with the forum (providing more detail about the $5,000 per month in credit card expenses, etc.) and we'll be more than happy to unlock this thread. Until then, no need for other forum members to reply to a thread that the original poster does not appear to have read since he posted.

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