All Forum Posts by: Justin Kemp

Thanks everyone for your responses and advice!

Hi all, new here! I am a recent college grad in Connecticut and planning to invest in my first property to house hack sometime next year. The plan is to live with my parents and save as much as possible this year, in order to invest next year. I am extremely fortunate to have a great-paying first job and a relatively small amount of student loans, all federal. I am in the position to pay off my loans in full - at the moment this would consume 1/3 of my current savings, which I would recover after three months working. There is currently a moratorium for federal student loans - they are not accruing interest and no payments are due. Currently the moratorium is supposed to end in September, but there are rumblings that it may be extended. I am considering two options here: 1) Pay off the loans in full now. 2) Allow my money to continue earning interest in my high yield savings account until the moratorium ends, then pay them off in full.

I have the following concern about waiting to pay: I expect my credit score will take a hit after I pay off the loans. They represent half of my total credit accounts and my oldest credit account is one of these loans. How long should I expect it to take my score to recover? I am concerned about this initial hit impacting my ability to qualify for a mortgage, or qualify for a better rate, and therefore wondering if I should pay off my loans ASAP to allow for recovery. Any advice is appreciated, thanks!