No. of Recommendations: 1
...if the $12k would make the difference between having 20% for a down payment vs. having to get PMI, then I would say that putting the money toward the down payment is probably better option.

The catch is that OP won't know this until he sells his current home and contracts for the new one (unless he can predict accurately what the respective sales prices will be). How about he puts the minimum toward the student loan now, to preserve cash in case it's needed, and then re-evaluate while negotiating for the new house?

Also: what DTI limits would he need to meet to get the best terms on the new mortgage?
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