[Flat Six]

Originally Posted by biosurfer1

at 7% interest, I would be eating bean and rice until that student loan was paid off....and having $200k in the bank when you have a $300k+ loan at 7% make no sense to me.

Originally Posted by look 171

Even if he doesn't do anything but throwing 20%, 60k to get it to from 7- 2.XX% is a no brainer. 2.xx% is free money, imo. Get the loan off his back and start investing. How old is this punk kid?

Originally Posted by Seahawk

First off all congratulations to your son. Well done.

Depending on the refi fees, penalties, etc. (make sure he gets all the details nailed to the penny), I would do both: Refi and then get busy paying off the loan as soon as practicable.

I always keep a level of liquidity that I am comfortable with for emergencies, contingencies, and peace of mind. That level is his to decide, but he appears to be in very good shape, enough to make some short term financially smart decisions.

Originally Posted by Noah930

Personally, I think saving for retirement is more important than buying a house--particularly in a place with super expensive real estate.

Start saving now (401K, 403b, or traditional IRA--it'll depend on what his employer offers), and he'll be much happier (financially) in 15-20 years. Whether he buys a home now or waits a few years, in a place like the Bay Area, he'll always have a mortgage, until he retires. I look at home purchase as something that pays out to my kids, not me. He'll never realize the profit of owning a house until he sells and downsizes, which probably won't be until after he retires.

^^ Some darn sound advice here . . . .