-
Q&A: Which should I pay more of right now? Mortgage, student loan, or neither. Should I invest instead?
Posted on October 14th, 2011 No comments
Question by Nick K: Which should I pay more of right now? Mortgage, student loan, or neither. Should I invest instead?
I have a home mortgage for $ 260,000 and a student loan for $ 20,000. My interest rate on my home is 6.75% and my rate on my student loan is 3%. My student loan is much easier to pay off since because of the amount and I know I probably will never pay off my home before I end up selling it (I just purchased the home). I know the rate is higher on the home but I’m not sure if it’s worth putting more towards it if the payments are going to stay the same regardless. Just more principal will be paid off. It does not seem to be the best time to invest but it may be my best way to beat the system. My savings account is yielding 4% but has been dropping lately. I don’t have an auto loan because I made the mistake of leasing a car 2 years ago so I’m paying those payments when I wished I had bought instead.Any advice from people who have been in this situation before. I’m a new home owner looking to get the most for my dollar.What’s your opinion? Any good tips out there?
Best answer:
Answer by Em’s_The_Word
The best advice I’ve heard is that it is best to subsidized off amounts owe than to earn interest on money you have. Usually the interest you earn is a lot less than the absorbing you are paying out.
Know better? Leave your own answer in the comments! -
Buying the son’s house to avoid capital gain – Pls advise?
Posted on December 6th, 2010 2 comments
-
Which should I pay more of right now? Mortgage, student loan, or neither. Should I invest instead?
Posted on June 2nd, 2010 3 comments
Nick K asked:
I have a home mortgage for $260,000 and a student loan for $20,000. My interest rate on my home is 6.75% and my rate on my student loan is 3%. My student loan is much easier to pay off since because of the amount and I know I probably will never pay off my home before I end up selling it (I just purchased the home). I know the rate is higher on the home but I’m not sure if it’s worth putting more towards it if the payments are going to stay the same regardless. Just more principal will be paid off. It does not seem to be the best time to invest but it may be my best way to beat the system. My savings account is yielding 4% but has been dropping lately. I don’t have an auto loan because I made the mistake of leasing a car 2 years ago so I’m paying those payments when I wished I had bought instead.Any advice from people who have been in this situation before. I’m a new home owner looking to get the most for my dollar.
What’s your opinion? Any good tips out there?
Nellie
Powered by Yahoo! Answers