Indiana627

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