Your friend Bob is a surgeon with student debt of $200,000 at an interest rate of 7%. Bob lives in a apartment and pays $1950 a month. He is considering buying a house from his friend Tom for $424,500 with no down payment. Tom's family has owned the house for decades, and they offered to financing it for Bob over a 360 month term. They haven't discussed an interest rate yet.

Should Bob accelerate paying off his student loan and save money, or should he consider making payments towards a new house? Assume the house will not change in value, and assume the rate of inflation stays stagnant at 3%.