Trying to qualify for a mortgage. What makes more sense: paying off 1 student loan (out of 5), or saving that money for a bigger downpayment and no PMI on the home?

Desc.	Amount	Interest	Monthly
Student loans	$100k (5 x $20k)	6%	$1,000
Home price	$200k	4%
Downpayment	$40k (20%) or $20k (10%)

FWIW, gross income is $60k and there are no other debts.

What makes more sense:

1. Paying off one student loan (which would also reduce the monthly payment from $1,000 to $800) and buying the home with 10% down and PMI

2. Not paying off one student loan and buying the home with 20% down and no PMI

Thank you!

Submitted May 17, 2017 at 11:14AM by FlixFlix http://ift.tt/2rrq7D4