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Student Loan vs. Mortgage

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Anonymous
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Student Loan vs. Mortgage

My goal is to get out of debt. I owe 56,000 on my mortgage at 6.67% and 26,000 on my student loan at 3.5%.  Which loan should I focus on paying off or should I continue with my regular monthly payments rather than trying to pay them off quickly?

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1 REPLY 1
Anonymous
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Re: Student Loan vs. Mortgage

Definitely make the minimum payments on both.

 

The way to pay the least amount in interest would be to throw all your extra money at the mortgage, as it has the highest interest rate, until it's paid off, then throw everything at your student loans.

 

Dave Ramsey would say to throw everything at your student loans because it has the lowest balance, and then as soon as that's paid off, throw everything at the house.  This gets rid of the one debt sooner, providing some nice psychological benefits, but it costs a bit more in the long run.

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