Pay off student loans vs. save for home

[brownr72]

I currently owe $16,000 in 2 different loans at low interest (3.12%).
I pay a total of ~$150 per month. I'm planning on purchasing a house in the future and am contemplating paying off the loans first or saving for the down payment. I qualify for an FHA loan so I don't need a ton saved but still a considerable amount. I should have enough saved to pay off my loans in a few months or I could have $16,000 saved towards a home downpayment.

It probably makes more sense to save the money for a downpayment since the interest on the SL are so low. However, just knowing that those loans are out there is annoying. This debt is the only fixed debt I have (no cc's, no car payments etc...). Is peace of mind enough to pay off a loan before saving for a home or what do you all think?

[colleenc90]

Why did your loans got accumulated?

[Cdn28]

I'm sure you've done this already, but use one of the online banking mortgage calculators to see what the difference is in how much you qualify for in a mortgage when you input your current debt.  If it's nominal I would keep the loans separate, as your rate is very low.  If it makes a bigger difference, then paying them off may be a better option - but overall, your debt isn't that big.

[Hope42010]

I agree with the above response but if I was you I would save this money for the house why? Simple, when you buy a house there is a lot of stuff and fees to take care right the way and all need cash at hand.

Just my two cents.