Does your high interest savings account really still earn 5.4%? The rates on those have been dropping significantly and quickly over the past few months.
Anyways, if it's really still at 5.4%, you should pay the CC because you have to pay 2% worth of tax on that rate, which brings your total interest to 3.4% - less than that 4.99% that you're paying.
As toward the house purchase, yes you'll need cash, and a lot of it. Probably 10% down on whatever house you decide to buy. I would still pay off that 4.99% and wait a little longer on the house if necessary.
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