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Joined: Apr 2013
Posts: 4,697
10 point
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10 point
Joined: Apr 2013
Posts: 4,697 |
House for me. If i got in a tight i could buy a cheaper truck.
Ethical behavior is doing the right thing when no one else is watching - even when doing the wrong thing is legal. Aldo Leopold .. (except when it comes to trailer tags)
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Joined: Jun 2016
Posts: 75
spike
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spike
Joined: Jun 2016
Posts: 75 |
Without knowing more...With a 4.2% mortgage, I wouldn't pay it off. Depending on your marginal tax rate, your effective rate is even lower than the 4.2%. Assuming you are working and have good job security, I would let the mortgage roll. Put the money you would put toward extra mortgage payments into an investment account.
The truck is still financed at a low rate (relatively), but I could understand the desire to go ahead and pay it off. That would be the only one of the two I would consider.
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Joined: Mar 2016
Posts: 338 Likes: 1
4 point
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4 point
Joined: Mar 2016
Posts: 338 Likes: 1 |
Tax benefits of a mortgage? How many average people actually itemize instead of using the standard deductions?
Pay off house, and pay off truck asap.
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Joined: Feb 2014
Posts: 5,140 Likes: 10
12 point
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12 point
Joined: Feb 2014
Posts: 5,140 Likes: 10 |
experience is a freakin' awesome teacher....
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Joined: Jan 2014
Posts: 1,330 Likes: 4
8 point
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8 point
Joined: Jan 2014
Posts: 1,330 Likes: 4 |
Definitely the house. The damn truck might start slipping tomorrow
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Joined: Jan 2014
Posts: 4,494
10 point
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10 point
Joined: Jan 2014
Posts: 4,494 |
I'd pay off the house and stash the remaining balance. Apply half the mortgage payment amount to the truck and the other half into my stash. Like said above, the truck can be sold or whatever if times get tough. At least you'll still have your house free and clear.
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Joined: Nov 2008
Posts: 4,616 Likes: 4
10 point
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10 point
Joined: Nov 2008
Posts: 4,616 Likes: 4 |
I’d pay off the house,you’ll probably pay more interest on the house then the truck so I’d pay it off and save some money there on intrest.
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Joined: Jul 2011
Posts: 40,044 Likes: 135
Freak of Nature
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Freak of Nature
Joined: Jul 2011
Posts: 40,044 Likes: 135 |
Sounds like you're already invested for the future. I believe I'd pay off the truck , put the rest toward the house principal . As suggested above , apply the truck payment to the house . What would be left on the house would pay of really quick.
I'm guessing since you only owe 54k on the house , you no longer have any tax advantages ?
Mighty good feeling being totally debt free.
"Why do you ask"?
Too many people spend money they don't have , on things they don't need, to impress people they don't know.
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Whild_Bill
Unregistered
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Whild_Bill
Unregistered
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The market is down I’d put it in the market and when trump goes back in the markets will go through the roof again
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Joined: Jul 2005
Posts: 19,582 Likes: 24
Old Mossy Horns
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Old Mossy Horns
Joined: Jul 2005
Posts: 19,582 Likes: 24 |
Emergency fund first, if you don't already have it.
Pay off shortest term loan first., truck.
Snowball that payment into the mortgage by paying a separate principal only payment of the payment amount each month at least for the remaining term of the truck.
Any leftover balance then put it to good use or continue Snowball toward mortgage that same truck payment.
But...if you paid off your mortgage now, it certainly wouldn't be a bad move. Figure out your tax deduction to see if it is really an issue without the mortgage interest deduction.
"The grass withers, the flower fades, But the word of our God stands forever." Isaiah 40:8
"Neither the wisest constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt.� Samuel Adams
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Joined: Oct 2017
Posts: 2,840 Likes: 45
10 point
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10 point
Joined: Oct 2017
Posts: 2,840 Likes: 45 |
If you have the years left to pay off another mortgage, and if your local rental market is strong, look at paying off house and buying a rental. Rental may pay for itself plus truck.
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Joined: Jul 2020
Posts: 10,392 Likes: 73
Booner
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Booner
Joined: Jul 2020
Posts: 10,392 Likes: 73 |
If you sell stocks because you needed emergency cash, would you make $ or lose $? If you made $, wouldn't the cap gains tax be higher than the mortgage or truck interest?
Unless you have some major deductions, the standard deduction would get you more $, so mortgage interest is a non factor there. It helps on your alabama state return.
I would stash the emergency fund cash in FDRXX, which will earn a little interest, but won't lose value.
If you paid off the house and then got in a tight and needed to borrow against it, you would pay a higher interest rate than your current rate.
Think of it this way. Your payment isn't tied to inflation. So you are paying the same amount in, with dollars that are worth less.
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Joined: Nov 2013
Posts: 3,452 Likes: 28
10 point
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10 point
Joined: Nov 2013
Posts: 3,452 Likes: 28 |
Well 12 for truck and 10 for house so far, gonna go with truck 1st also so 13-10, emergency fund 1st
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Joined: Jul 2020
Posts: 952 Likes: 19
6 point
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6 point
Joined: Jul 2020
Posts: 952 Likes: 19 |
After the emergency fund is in place id be running to the bank to pay off the house.. then start chipping away the car loan with the money saved on house payment..
Last edited by hamma; 03/23/23 05:53 PM.
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Joined: May 2018
Posts: 3,563 Likes: 13
10 point
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10 point
Joined: May 2018
Posts: 3,563 Likes: 13 |
Pay off the truck first! Mortgage is tax deduction!!!
Hunting brings out the worst in people.
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Joined: Dec 2018
Posts: 1,500
8 point
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8 point
Joined: Dec 2018
Posts: 1,500 |
Wife and I own our house free and clear and have for over 27 years. A financial advisor told us when we were in a similar position to pay off the house first and all the rest later. Best advice I was ever given.
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Joined: Jan 2016
Posts: 4,753
10 point
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10 point
Joined: Jan 2016
Posts: 4,753 |
Truck first- then apply that payment to the house until you have enough cash to pay it off. The house is an appreciating asset and the truck is a depreciating asset. I'd pay off truck first then start loading up on paying off mortgage. First thing I'd do is set aside a 6 month safety/emergency fund
A mans got to know his limitations.
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Joined: May 2016
Posts: 1,582
8 point
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8 point
Joined: May 2016
Posts: 1,582 |
Pay off the home first.....
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Joined: Jan 2012
Posts: 843 Likes: 2
6 point
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6 point
Joined: Jan 2012
Posts: 843 Likes: 2 |
Id go truck first, higher interest. Then double up on house.
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Joined: Dec 2006
Posts: 18,299 Likes: 71
Old Mossy Horns
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Old Mossy Horns
Joined: Dec 2006
Posts: 18,299 Likes: 71 |
I’m sure bean counters can support whatever. But there’s a great feeling not having a house payment.
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