Advise on finance question

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Old 21 Oct 2006, 11:19 am   #1 (permalink)
cimetiere
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Default Advise on finance question

Hi!

Should I have 1K to reimburse a loan, should I give it to my mortgage which
still has 20 years to go, or to my car loan which has 4 years to go? They
both have 5.8% cost.

Many thanks!


--
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Daniel
http://perso.dromadaire.com/cimetiere/spirituel.html
http://perso.dromadaire.com/cimetiere/psychophilo.html


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Old 21 Oct 2006, 04:40 pm   #2 (permalink)
mjc
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Default Re: Advise on finance question

cimetiere wrote:
> Hi!
>
> Should I have 1K to reimburse a loan, should I give it to my mortgage which
> still has 20 years to go, or to my car loan which has 4 years to go? They
> both have 5.8% cost.
>
> Many thanks!
>
>


Definitely the mortgage. Most of what you pay over the years
is interest.
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Old 22 Oct 2006, 09:29 am   #3 (permalink)
mack
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Default Re: Advise on finance question


"mjc<DELETETHIS>13 13 @verizon.net>" <"mjc<DELETETHIS> wrote in message
news:Jtw_g.132$%T3.53@trndny03...
> cimetiere wrote:
>> Hi!
>>
>> Should I have 1K to reimburse a loan, should I give it to my mortgage
>> which
>> still has 20 years to go, or to my car loan which has 4 years to go?
>> They
>> both have 5.8% cost.
>>
>> Many thanks!
>>
>>

>
> Definitely the mortgage. Most of what you pay over the years is
> interest.


The original poster already has a leg up on most people, who would consider
the extra $1K "A windfall", and go spend it immediately on something
(anything) "new". At least he's starting to whittle down his debt.


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Old 23 Oct 2006, 08:20 pm   #4 (permalink)
Wolfgang
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Default Re: Advise on finance question

Pay the car loan since interest on it is not tax deductable -- assuming you
can take other than the standard deduction. Make sure its one you can repay
early and that it goes towards the principle --- not just paying months in
advance. If not the case then pay towards the house --- or put it in a 6
month or 1 year CD at E-Trade for 5.3%

"cimetiere" <cimetiere@spammoncanoe.com> wrote in message
news:AMr_g.34981$Da6.451800@weber.videotron.net...
> Hi!
>
> Should I have 1K to reimburse a loan, should I give it to my mortgage
> which
> still has 20 years to go, or to my car loan which has 4 years to go? They
> both have 5.8% cost.
>
> Many thanks!
>
>
> --
> --
> Daniel
> http://perso.dromadaire.com/cimetiere/spirituel.html
> http://perso.dromadaire.com/cimetiere/psychophilo.html
>
>



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Old 23 Oct 2006, 10:37 pm   #5 (permalink)
mjc
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Default Re: Advise on finance question

Wolfgang wrote:
> Pay the car loan since interest on it is not tax deductable -- assuming you
> can take other than the standard deduction. Make sure its one you can repay
> early and that it goes towards the principle --- not just paying months in
> advance. If not the case then pay towards the house --- or put it in a 6
> month or 1 year CD at E-Trade for 5.3%



I don't think you realize how much of what is paid on a
mortgage over its life is pure interest. Especially if it's
in the first half of the mortgage life, paying off principle
will yield vastly more savings than any CD or tax deduction.


>
> "cimetiere" <cimetiere@spammoncanoe.com> wrote in message
> news:AMr_g.34981$Da6.451800@weber.videotron.net...
>
>>Hi!
>>
>>Should I have 1K to reimburse a loan, should I give it to my mortgage
>>which
>>still has 20 years to go, or to my car loan which has 4 years to go? They
>>both have 5.8% cost.
>>
>>Many thanks!
>>
>>
>>--
>>--
>>Daniel
>>http://perso.dromadaire.com/cimetiere/spirituel.html
>>http://perso.dromadaire.com/cimetiere/psychophilo.html
>>
>>

>
>
>

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Old 24 Oct 2006, 06:52 pm   #6 (permalink)
bernard.decunha@gmail.com
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Default Re: Advise on finance question

I agree that you should pay off the car loan first. You do pay a lot of
interest over the life of a mortgage but 1,000.00 is not going to make
even a small dent in it and the house is more of an asset than the car
which is not an asset at all
mjc<DELETETHIS>13 a scris:
> Wolfgang wrote:
> > Pay the car loan since interest on it is not tax deductable -- assuming you
> > can take other than the standard deduction. Make sure its one you can repay
> > early and that it goes towards the principle --- not just paying months in
> > advance. If not the case then pay towards the house --- or put it in a 6
> > month or 1 year CD at E-Trade for 5.3%

>
>
> I don't think you realize how much of what is paid on a
> mortgage over its life is pure interest. Especially if it's
> in the first half of the mortgage life, paying off principle
> will yield vastly more savings than any CD or tax deduction.
>
>
> >
> > "cimetiere" <cimetiere@spammoncanoe.com> wrote in message
> > news:AMr_g.34981$Da6.451800@weber.videotron.net...
> >
> >>Hi!
> >>
> >>Should I have 1K to reimburse a loan, should I give it to my mortgage
> >>which
> >>still has 20 years to go, or to my car loan which has 4 years to go? They
> >>both have 5.8% cost.
> >>
> >>Many thanks!
> >>
> >>
> >>--
> >>--
> >>Daniel
> >>http://perso.dromadaire.com/cimetiere/spirituel.html
> >>http://perso.dromadaire.com/cimetiere/psychophilo.html
> >>
> >>

> >
> >
> >


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