For many families, the toughest financial question isn’t just “can I afford a home?” — it’s “should I buy a home now, or put more toward college savings first?” Parents weigh their kids’ future, adults think about grad school, and often both goals feel urgent at the same time.
The good news: you don’t have to choose all-or-nothing. With the right tools, you can make progress on both — and your mortgage strategy plays a key role.
It can also be eye-opening to see how your lender compares to others in your area—small differences in cost can free up money that goes straight into a college fund.
The Tax Advantage of Homeownership
Unlike rent, mortgage payments often come with tax benefits. Homeowners may be able to deduct mortgage interest and property taxes — reducing taxable income. That savings can be redirected toward education costs.
The Power of a Lower Rate
It’s easy to think more income or more savings is the only way to afford both goals. But even a small change in your mortgage costs can free up meaningful cash.
- On a $350,000 loan, lowering your rate by just 0.25% saves about $75/month.
- That’s $900 a year — money that could fund classes, tuition, or a child’s college account.
Making sure you’re getting the lowest rate possible by comparing Loan Estimates is one of the fastest ways to balance housing with education savings.
Creative Buying Options
Some buyers use their home itself to support both goals:
House hacking: Rent out a basement unit or spare bedroom to cover part of the mortgage, freeing up dollars for tuition savings.
Multigenerational living: Sharing costs with family reduces expenses while building equity.
The Bottom Line
Balancing mortgage payments with education costs isn’t easy — but it’s not an all-or-nothing decision. Homeownership can provide tax breaks, equity growth, and lower monthly costs that create flexibility for education savings. The key is making your mortgage work for you: compare lenders, understand your options, and lock in the lowest costs possible. That way, you’re not just buying a home — you’re building long-term stability while keeping education within reach.