This is a great question especially as it anticipates the desire to buy a house. Keep in mind you probably have little in the way of deductions, setting funds aside for the purchase of a house is an extremely good idea. Don't let an investment professional convince you that having a maximum mortgage with deductible interest is the way to go. In fact, although it may work in the long run, the goal is to pay off the house as quickly as possible as the after-tax dollars for exceed the dollars available with a mortgage and I can prove this to anyone day in and day out. More specifically, assume the minimum down payment of $400,000 house will be about 20% or $80,000. Given the timeframe of 10 years, it simply means you have to save $8000 a year assuming no earnings on the savings. Based on your timeframe, be sure that both of you are taking advantage first and foremost a 401(k) and/or 403B plans to the extent they are available. The next step would be to set aside the savings for the house and don't hesitate to look for a larger down payment than 20% in line with my thinking about. Hope this helps and good luck
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