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Mortgage Community Forums | Loan Talk for First Time Home Buyers | Should I apply extra payment toward the principal of my 2nd mortgage or toward the principle of my 1st?

Should I apply extra payment toward the principal of my 2nd mortgage or toward the principle of my 1st?

Posted on: 21st Aug, 2009 11:47 am
the second mortgage is for $24,00 at 6.75 interest.
the 1st has a balance of 118,000 at 6% interest
Guest

Welcome to the forum

I woudl apply it to the secodn and close that loan ASAP

Good luck and feel free to ask
Realgeni
Posted on: 21st Aug, 2009 11:52 am
You always want to pay down the loan with the highest rate of interest first.
eric1
Posted on: 21st Aug, 2009 06:03 pm
I will advice you to get the lower interest loan and pay off the higher interest one first. and mind your friend this is legal to do it.
bensonclive
Posted on: 22nd Aug, 2009 12:12 am
Guest

Also rememebr, once you pay off one loan, you will probably have equity int eh house and you can refinace the rest of teh loan for lower rate, if the market conditiosn are helpful

Good luck and feel free to ask
Realgeni
Posted on: 23rd Aug, 2009 06:56 pm
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