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Old 05-29-2009, 06:35 PM
419 posts, read 1,281,535 times
Reputation: 192


None of the above. Go to Vegas and plunk 20k down on black. If it hits then let it ride!
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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.
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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.
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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.
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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.
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