U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-29-2009, 06:35 PM
 
419 posts, read 1,281,535 times
Reputation: 192

Advertisements

None of the above. Go to Vegas and plunk 20k down on black. If it hits then let it ride!
Rate this post positively Reply With Quote Quick reply to this message

 
Old 05-29-2009, 06:52 PM
 
Location: Eastern Washington
15,171 posts, read 48,088,072 times
Reputation: 14480
Seriously, the 1.9% interest car loan is your last priority.

The rest of the loans, you didn't give enough information to determine the optimum course of action:

If you are writing off the interest on the 2nd mortgage, *and* if your job is "relatively" secure (whatever that means) I would pay off the higher interest rate car loan, paying only as agreed on everything else till it's gone.

If you are not paying enough interest on the house note to exceed your standard deduction, if the car on the 2nd note is not that good, and particularly if paying off the 2nd mortgage on the house would mean you could pay your house note on only one income (I'm assuming the OP is a member of a couple and both work, if not ignore) and/or your job is shaky, I'd pay the 2nd mortgage off first, then the higher car note.

So unless you consider your job shaky, or are not writing off the house interest, I'd pay off the higher car note, then the 2nd, then finally the 1.9% car note. If job is shaky or you can't deduct the 2nd interest, I'd do the 2nd, then the higher car note, then the 1.9% note.

So, the only firm advice I have is the 1.9% car note is your last priority to pay off.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-29-2009, 07:52 PM
 
Location: In America's Heartland
929 posts, read 1,940,479 times
Reputation: 1182
Default Less debt equals less stress...

I would pay off the two cars, then apply the extra $592 to the 2nd mortgage, then when you kill it, apply the extra $733.66 towards your first mortgage and add any extra cash you can to pay it off as soon as you can. I would also stop borrowing money for cars. Save up and Pay cash on what you can afford, which should always be a good used car. Cars depreciate way too fast to buy new. There's one thing that you can't quantify with financial math or logic. Less debt equals less risk which equals less stress. Less stress equals a longer and healthier life.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-31-2009, 07:29 AM
 
20,793 posts, read 56,148,602 times
Reputation: 10583
Did you look to see how much going from 6.5% to 5% would save on the back end of your home loan? Yes, it might only save $75/month in your payment but it might save several thousand in the long run. I would refinance your 1st loan, roll the second into the refinance and pay off your auto loans. Your home loan/2nd will be about the same amount as you are paying now for both and you can then put the auto payment into your home loan paying principal only with that and have your house paid off in about 7 years vs 15. I would keep a HELOC on your home for $50,000-$100,000 just incase. What you are saving on your taxes is probably minimal compared to what you could be saving with no house payment-putting that money toward retirement funds for example.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-04-2010, 06:47 PM
 
2 posts, read 5,313 times
Reputation: 10
So what did you end up doing? I was in the same boat as you. I paid off my cars and am applying the car payment money towards knocking out my 2nd mortgage early. The interest on my 2nd mortgage is still tax deductible and I still need it this year. Extra cash is being socked away in investments.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top