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[quote=Anonymous]Hi -

I think I'm posting in the right place?

We will be selling in one state and moving to the DC area in the next few months.  We will make approximately $125K with the property we sell.  We intended to put it immediately into the next property that we buy, along with some savings, to be a decent down payment.

We have some student loan debt, however.  It's the only debt that we have (no car payment, no consumer debt, etc).  It is not an insignificant sum - probably $80K? I may be off by +/- 10K.  It's automatically deducted every month and it's a lot of money, like $1100/month.  We don't qualify for lowered payments or fed forgiveness due to income and various other loopholes.

We can buy a new place in the DC area with all closing costs covered and we have a year to do so (before the closing cost coverage benefit expires).  We can live basically rent-free for a year with family, and save up a bunch of money that way, too.

My question - is our original plan (to use proceeds for down payment) better than the alternative (use proceeds to pay off student debt, then build up a new down payment as quickly as possible)?  Which is smarter?  I have run the numbers so many different ways that my head is spinning.  I think in all instances, it makes the most sense to buy within the year because closing costs amount to a significant portion of cash, too.

Thanks.
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