<prompt> Human: I recently went and saw a personal finance manager thru Merrill Lynch. My wife and I make a combined 200K gross minimum a year. We have a mortgage valued from 160-170K, and owe 145K on it. We owe a combined 170K in student loan debt It hurts to type that. He said that since neither of us have credit card debt or a car loan that we should consider buying a bigger house 300K using an all interest loan. His reasoning was that the all interest loan will lower my monthly payment and I can use that difference to help pay down student loan debt. Getting out of bad debt using good debt I guess. Also, with house being interest only, it is 100 deductible for tax bracket purposes. Been lurking here for a few months and thought Id get everyones opinion!Assistant: Youre 315,000 in debt and want to guy a bigger house to save money? Frankly, thats idiotic.First, the math doesnt work out, so I dont know what the hell your planner is doing with his life, because hes in the wrong profession. If you get a 300,000 - 20,000 your equity now 280,000 mortgage, thats 933 a month in interest 280k412. Right now the principal and interest on your house is probably around 787 assuming 4 at 30 years. So this will increase your monthly bill, give you less money for student loans, and of course youre building zero equity. And this assumes you live in a magical land with no closing costs, which will eat up that 20k down payment anyway. And if you finance 300k, its an even 1,000month in interest.If you want an all interest loan, then fine - just refinance. Its not like you to buy a whole new house, losing tens of thousands of dollars in closing costs, realtor fees, and repairsupgrades. Or if you want to buy a house because you want a house, then thats okay, too. Anyway, the interest free loan is risky - better chance that you end up underwater, so keep a healthy cash reserve so you can sell if need be. And while its tax-deductible, note you still forfeit the standard deduction of 12,600 every year as well in order to take advantage, so factor that in as well. Its not like 100 spent 28 refund from Uncle Sam.Human: I guess to give a little more info. Current house payment is right under 1500 a month. I have right under 20K in savings currently. We have a 3 Bedroom house with 1 kid and another one due in a few months. Not necessarily wanting to move up, but Id love to get a house twice as nice if its worth it. Seems risky in case something doesnt turn out right, which is why I wanted you guys opinion. Thanks for your help!Assistant: Current house payment is right under 1500 a month.Thats surprisingly high... Can you break that down for us? How much of that is Loan Principle Interest? What was initial loan amount, interest rate, and payoff period? 30 yer of 15 yr?Human: Just pulled my statement and heres how it broke down. 30 year loan. 4.5 286.90 Principle543.36 Interest637.59 Escrow taxes and Insurance 1467.85 Total  <response>: Got it. So the portion of your payment that is actually related to the LOAN is just the 286.90 543.36 830.26. The rest all goes to taxes and insurance. Think of that number alone when you read urnelsonee s first response. Even an interest only loan on a 300k house will be more than that, and the bigger house will probably have more taxes and insurance, so the escrow amount will go up as well. 