Hello everyone,
Curious on your thoughts on loans and extra payments. (After other savings already in place)
I am getting a CPO, with a loan and my only other loan is my mortgage. My previous vehicle loan was 0% interest so I just put extra on my mortgage principal, but now my MS loan will be what my mortgage loan is (15 years at 2.5%) and will be paid off before 2040.
Typically you want to pay more on the loan with a higher interest, but what about when they match? I'm assuming since a vehicle, regardless of which, is a depreciation item, where a home (at least in my case) just continues to increase in value, to car loan makes more sense. Both with a good down payment, so neither will be upside down (specially the home).
Maybe instead of extra payments, do something else with it? But I'm guessing if I'm paying interest, I should look at paying that off first. Opinions?
Curious on your thoughts on loans and extra payments. (After other savings already in place)
I am getting a CPO, with a loan and my only other loan is my mortgage. My previous vehicle loan was 0% interest so I just put extra on my mortgage principal, but now my MS loan will be what my mortgage loan is (15 years at 2.5%) and will be paid off before 2040.
Typically you want to pay more on the loan with a higher interest, but what about when they match? I'm assuming since a vehicle, regardless of which, is a depreciation item, where a home (at least in my case) just continues to increase in value, to car loan makes more sense. Both with a good down payment, so neither will be upside down (specially the home).
Maybe instead of extra payments, do something else with it? But I'm guessing if I'm paying interest, I should look at paying that off first. Opinions?