View Full Version : Which loan to pay down 1st?
NeedtoSave
Which loan is better to pay down 1st?
6% mortgage, $45k balance (on house for sale or rent)
3.25% variable rate, interest-only HELOC, $249k balance (on same house)
5.75% mortgage, $265k balance (primary residence)
Thanks.
nck4857
I would say the first one,the 6% 45K balance..
Jenie0109
You could pay them all by using mortgage modification or loan consolidation.
NeedtoSave
Thanks. Wouldn't that actually cost more per month because the interest-only loan balance would require principal payments once they were all combined?
NeedtoSave
I would say the first one,the 6% 45K balance..
Thanks. That would be the highest interest rate and the lowest balance. However, the 3.25% is a variable rate and really makes me nervous with the lifetime cap of 15% which would not be affordable. Eventually, rates will rise again.
vBulletin v3.0.1, Copyright ©2000-2009, Jelsoft Enterprises Ltd.