Pay mortgage or student loan

[Anonymous]

Try something like this:

https://www.calculator.net/debt-payoff-calculator.html

It would be the "cheapest" in the long run if you pay off the student loans with the extra money but you could also put the extra money to neither the mortgage or the student loans and put into some kind of vehicle earning 5% and retain the liquidity to use as needed.

[Anonymous]

How much does DH earn? Key question here.

[Anonymous]

Anonymous wrote:How much does DH earn? Key question here.

$300k

[Anonymous]

I bite pay down the mortgage. I’d personally rather have security that we will remain in our family home over being free of his student debt.

[Anonymous]

Anonymous wrote:I bite pay down the mortgage. I’d personally rather have security that we will remain in our family home over being free of his student debt.

*I vote to pay down mortgage

[Anonymous]

Do you have an emergency fund? Build that up and then pay down the higher interest loan.

[Anonymous]

The mortgage debt is at least partly tax deductible and the rate is low so it makes no sense to pay it down faster when you have higher interest debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How much does DH earn? Key question here.

$300k

Ouch. Is that still going up? $200k seems like a lot of debt to make that.

[Anonymous]

Another vote for mortgage.

[Anonymous]

Aren’t you a partnership? Why is your husband being left to tackle this debt on his own?

[Anonymous]

Anonymous wrote:DH has $200k from his grad school in federal student loans at 7%. We also have a $500k mortgage at 3%. He is the sole income provider in our household as I am a SAHM. With the student loan payments starting next month we’ve discussed throwing extra payments at the loans to knock them out. I know that it make financial sense to pay the higher interest rate debt first but I think we should put our extra payments towards our mortgage first because atleast we will have security that we have a home if oneday DH loses his job or can’t work. I’d rather than a paid off mortgage than less student loans. My thought is, if we don’t have jobs and can’t pay our mortgage, the lender will foreclose but if we can’t pay the student loans , oh well, atleast we have our house. What would you do? where would you target your extra payments?

Let's say your mortgage is 2k a month and you're paying 1k extra. Unless you recast your loan, you're still on the hook for the 2k monthly payments and you won't get "credited" extra principal, so you this logic doesn't work.

Unless you're VERY CLOSE to paying off your house, like 1-2 years away.

[Anonymous]

Get a job. These days, there are part time jobs that you can do while working from home. Get a part time job and start contributing to the repayment of these debts. smh

[Anonymous]

Anonymous wrote:

Anonymous wrote:DH has $200k from his grad school in federal student loans at 7%. We also have a $500k mortgage at 3%. He is the sole income provider in our household as I am a SAHM. With the student loan payments starting next month we’ve discussed throwing extra payments at the loans to knock them out. I know that it make financial sense to pay the higher interest rate debt first but I think we should put our extra payments towards our mortgage first because atleast we will have security that we have a home if oneday DH loses his job or can’t work. I’d rather than a paid off mortgage than less student loans. My thought is, if we don’t have jobs and can’t pay our mortgage, the lender will foreclose but if we can’t pay the student loans , oh well, atleast we have our house. What would you do? where would you target your extra payments?

Let's say your mortgage is 2k a month and you're paying 1k extra. Unless you recast your loan, you're still on the hook for the 2k monthly payments and you won't get "credited" extra principal, so you this logic doesn't work.

Unless you're VERY CLOSE to paying off your house, like 1-2 years away.

+1
Even if you feel psychologically better with the idea of a paid off house, it usually takes a long time to pay it off and you are less safe in the interim because you have less liquid cash. If you really want to pay it down, put the extra payments in a high yielding savings account and once you accrue the amount of the principal then you can pay it off all at once. These days with savings yields higher than mortgage rates it makes even more sense.

[Anonymous]

Lady, get a job.

[Anonymous]

Pay the student loans off already!