Save, Spend on House, Invest, Pay off Loans?

[SPE]

We have the opportunity to potentially sell our Med school house for roughly 200k more than we owe on it (home appraised for that much and we've had offers). We are approaching the end of residency (1 physician, 1 non-physician working spouse) and are discussing the possibility of building our forever home in our hometown (job offers on the table). This is all hypothetical at the moment, but given this scenario, which would be the smartest option (after a loan consolidation, with hopefully a reasonable interest rate)
A--pay down medical school loans with entire amount
B--pay down part of loans and use some for investing/retirement and the rest for building costs?

[Zaphod]

SPE wrote:

We have the opportunity to potentially sell our Med school house for roughly 200k more than we owe on it (home appraised for that much and we’ve had offers). We are approaching the end of residency (1 physician, 1 non-physician working spouse) and are discussing the possibility of building our forever home in our hometown (job offers on the table). This is all hypothetical at the moment, but given this scenario, which would be the smartest option (after a loan consolidation, with hopefully a reasonable interest rate)
A–pay down medical school loans with entire amount
B–pay down part of loans and use some for investing/retirement and the rest for building costs?

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Thats a great position to be in. Since its going to be tax free and you're maybe in a low enough tax bracket, I'd try to put some into a roth, or a back door if at all possible (unsure, I've never done so just literally throwing it out there).

After that it'd be nice to give yourself a little emergency fund, and then maybe do a bit of everything. No such thing as smartest option as that will depend entirely upon your future goals, etc...

Why the rush on the forever home? Always fascinated that people believe/want to live in the same house (even place) for 15+ years. So many things can change including your needs, wants, and tastes. But if thats what you want so be it.

[jhwkr542]

I'm in a similar situation as I finish up fellowship. I've chosen B since most doctor's loans have high interest rates. We're waiting 2 years to save up since our house only went up about $40k during residency.

For us, the rush is to have our oldest start school in a nicer school district, which starts in 2 years. Then, it'll be throwing money at student loans for a few years.