Posted on: 17th Aug, 2011 11:39 pm
hi there… i would need your help to decide which loan to pay off first. i have 3 loans - 1 mortgage, 1 student loan and 1 car loan. i'm really struggling with which one to pay off first.
loan 1, student loan: the loan is of 10,000 and has an interest rate of 3.5% after interest tax deduction. i have diligently paid off this loan with all the extra money that i have. luckily, i don't have any dues on this payment till 2013.
loan 2, auto loan: the apr is 3.88%. the balance on this loan is 2800. payment is 140 a month. i expect the car to last 6-8 more years.
loan 3, mortgage: i'm current on this payment as well my lender has offered a refinance with a term of 15 years at a lower interest rate than what i'm exactly paying.
loan 1, student loan: the loan is of 10,000 and has an interest rate of 3.5% after interest tax deduction. i have diligently paid off this loan with all the extra money that i have. luckily, i don't have any dues on this payment till 2013.
loan 2, auto loan: the apr is 3.88%. the balance on this loan is 2800. payment is 140 a month. i expect the car to last 6-8 more years.
loan 3, mortgage: i'm current on this payment as well my lender has offered a refinance with a term of 15 years at a lower interest rate than what i'm exactly paying.
Hi Jackson,
Wow... that's a commendable situation!! You have maintained your payments even through this economic crisis and are even ahead in your payments! :-)
Your student loan is in a very good standing as you don't owe anything to them till 2013. As far as your mortgage is concerned, you can go for the refinance as it will lower the term of the loan as well as save you some money in interest payments. However, keep in mind that there are closing costs associated with the refinance.
I feel that it is the car loan that you can pay off first. If you have the extra money, try to pay off your car loan. In this way, you'll have an asset and paying off the car loan in full will have a positive impact on your credit report.
Thanks,
Jerry
Wow... that's a commendable situation!! You have maintained your payments even through this economic crisis and are even ahead in your payments! :-)
Your student loan is in a very good standing as you don't owe anything to them till 2013. As far as your mortgage is concerned, you can go for the refinance as it will lower the term of the loan as well as save you some money in interest payments. However, keep in mind that there are closing costs associated with the refinance.
I feel that it is the car loan that you can pay off first. If you have the extra money, try to pay off your car loan. In this way, you'll have an asset and paying off the car loan in full will have a positive impact on your credit report.
Thanks,
Jerry