Do I pay for my car or one of my mortgage?
- Truck $ 40,000 financed at 6.9% APR fixed for 84 months (less 6 months) – $ 30,000 Second mortgage at 9.5% APR fixed in a globe of 15 years (he was 18 months) – 125,000 first mortgage of $ 7.125% APR for one year conventional fixed 30 (was 18 months) – $ 13,000 boat financed at 5.9% fixed for 120 months (4 years, 6 years to go) The amounts above are current estimates, is not representative of the original loan balance. My instinctive reaction is to pay the mortgage Senior second because it carries the highest interest rates. However, I heard that the interest paid on my mortgage is tax deductible, so it would be wiser to pay the first truck? I talked with a CPA and a financial advisor and only telling me that I'm doing what I'm emotionally comfortable. I could care less about the thrill … I want to do what is financially solvent. If what is the right decision here and why? My taxable income will be approximately October 2008. $ 166,000 USD. Thank you!
Paying the truck and one tanker and refinancing rate mortgage second at a lower fixed rate (slightly decreased) or refinance the second mortgage with a line of credit with mortgage first fleet. Vehicles depreciate so fast, they never recover the interest it earns on loans, but should recover all the interest you pay on home loans. It also has the ability to deduct mortgage interest.
Tax Law, Real Estate & Credit Tips : Time Share Tax Deductions