Originally Posted by DavidBibby
With more information I could help you a little bit better.
I would pay off the car loan first. Here's why:
Based on what I have so far.. you're paying about $415/month on the car and $143 on the Home equity loan.
So in terms of having more cash flow in the fastest time possible, you'd want to focus all your energy on eliminating the car payment.
If it was possible to put an extra $100, $200, or $300 extra on your car payment each month.. you'd pay it off
8, 13, or 18 months earlier respectively.
If you then rolled your car payment into the Home Equity Loan... you'll be saving anywhere from $5000 - $7500 in interest.
More info would certainly help..
How much extra do you plan on putting to one of these loans?
So, I was somewhat mistaken.
The car loan was taken out 2/2009 for 60 months. Rate is 4.89%. We financed $12500, and payments are $236.51 per month.
The home equity loan was taken out in 6/2005. Rate is 6.88%. The initial loan was $19,500. Payments are $150 per month.
The primary loan on the condo was for $175,500. Of course, we got a 5/1 ARM and now are just on an adjustable rate. I know I need to refinance it, but it's a hard proposition when the rate is 3.75% this year! Our principle and interest on that is about $800/month.
Now the students loans are another matter. The benefit is that they have been consolidated at about 2.875%. My plan is to pay these off over a very long period since the interest rate is so low.
So, I guess I owe more on the home equity loan rather than the car. But I can deduct the interest on my taxes. So, is it better to get the car paid off and then start tackling the home equity loan?