| Pay off morgage or equity loan? |
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EastMR2
New Poster
Cash: $ 0.45
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Joined: 13 Sep 2005
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| Pay off morgage or equity loan? |
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I have a mortgage balance for about 230K @6% and about a 30K equity line balance @6.5%.
I am about to sell my car for about 20K and was wondering which loan I should pay down to save as much as possible on interest?
I did some calculations and is seems like the mortgage would save me more money, but that doesn't logically make seems to me, I think I'm missing something, or calculating something incorrectly.
And information is appreciated.
Thanks,
-Joe
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Tue Sep 13, 2005 2:13 pm |
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sambo
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w/o even doing the math common sense tells me that 6 % of 230k is more than 6.5 % of 30k.
but then again if you take care of the 30k asap then it wont have a chance to eat u in interest saving you money that way. after paying off the 30 you could use the money you had been paying monthly for both on just the 230k
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Tue Sep 13, 2005 2:54 pm |
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MattL
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Pay down the Home Equity loan first. Your paying off $20k, so the interest only applies to that amount. Obviously 6.5% of $20K is more than 6% of $20k.
Then, pay off the remaining $10k ASAP. Apply the payments previously made to the Home Equity to the first mortgage.
$$$ Debt Elimination
Software | Computers | Electronics
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Tue Sep 13, 2005 8:00 pm |
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ushomeloans
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Location: Sacramento
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last post is dead on. I would pay it off, and if it is not fixed, I would try to lock the second. I dont think prime will be rush up next year as much, but will.
Thanks,
Chris Kemp
US Home loans
chriskemp@us-homeloans.net
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Tue Sep 13, 2005 10:18 pm |
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EastMR2
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Thanks!
Thats kind of what I figoured, but wanted to make sure.
Now i just have to sell my car....
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Wed Sep 14, 2005 11:20 pm |
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