Put bigger down payment on house or payoff car loan?

We are relocating. We've sold our old house and we'll have about $70,000 in the bank to use towards our next house. When all is said and done with buying the new house and closing costs, I'd like to have $10,000 still in the bank for emergencies, so I've got $60,000 to play with.

We've found a house we like that's listed for $187,900. Planning to make an offer today or tomorrow, and hoping final selling price is no more than $180,000. We're going to get a 30 year conventional mortgage for hopefully no higher than 6.25%. So for every $10,000 I mortgage, the payment goes up about $65.00.

I currently have 3.5 years left on my car loan at just under $300/mo. The payoff amount is about $11,000.

My question is, should I take $11,000 out of my $60,000 down payment/closing fund and payoff the car loan, resulting in my mortgage payment going up about $65.00, but eliminating my nearly $300/mo car payment?

I'd then take most or all of that $300 car payment and pay extra each month on the mortgage (hopefully to payoff 30 year mortgage years early). Thanks for the advice.

Mark

What is the APR of the car loan?

Either 6.99% or 7.99%. Can't remember for sure. I think 7.99%.

Exact payoff as of today is $11,426.81. Maturity date is 03/30/2012.

I'd pay off the auto loan and use the $300/month to fund an IRA, contribute to your company's 401(k), or start funding a taxable mutual fund, depending on other factors you haven't mentioned (your income level and employer's 401(k) options, for starters).

Paying off the house early is not a horrible move, but not the best move in most cases.

Our main goal in doing this move is so that we both don't have to work fulltime just to afford our house and fulltime daycare. The main objective is getting as low mortgage payment as possible so 1 of us can work part time and stay home with kids more. So with that being said, would you still recommend paying off the car loan and then using some or all of that monthly payment and paying extra on the mortgage?

If your main goal is to simply lower your monthly bills, I would still pay off the car note first.

Still, I wouldn't use all of your profits to pay off the car and the house. You need to have 3-6 months worth of net income in emergency savings and try not to neglect retirement in order to cut today's costs.

Of course, a lot of information is missing (age, income, other debt, COL, other investments, etc.) which would help with the bigger picture.