I would pay down ALL the loans first. If you lose your job and there is a hiccup in your income you are gonna lose your house, destroy your credit rating, quite possibly have a ton of loans still staring you in the face, and insult to injury you are still going to be required to pay the interest on the loans while you fall to financial ruin. Don't forget that house loans are interest accruing, also. You will be paying that interest on top of what little equity you accrue in the house in 2 or 3 years, plus, mortgages require insurance and other concurrent costs that renters do not pay. People who support the house buying idea say it's tax deductible, but I would say not very.
My advice is get free from debt as job one. Then at least you are not paying money out with no tangible benefit. After the loans are paid off or down in a few years, then buy the house. I graduated aerospace school with $62k for school loans a year and a half ago. Since then I have cut the sum in half. I live kinda small and rent. But in another two years at most I will be free to buy golf clubs, house, and puppies or whatever without bleeding hard earned money away in the form of interest.
Last edited by Cubdriver; 01-22-2008 at 04:36 PM.