Pay off an Auto-Loan or add to Mortgage?

We have a spare $3000 from our tax return and have a couple of options for debt payment.

We can pay an auto-loan off completely ($250/month ) or add it to our Mortgage and get closer to removing the MPI ($120/month). We need a total of $4600 to remove out MPI, so that won't get the job done - but it will take a big chunk.

What would you do?

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  • vrh07 said:
    What would you do?

    I would pay off the car, then use the 250/m to work on 4600 PMI situation.

    I honestly don't know if that would save more money though overall.  A lot of people might bust out the calculators and do the real math on it.  But for me, the simplicity of one less thing to pay a month, and just having it done is worth it.

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      • vrh07
      • Navy_Blue_Display_1459d
      • 2 yrs ago
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      a_different_joel : I think both options are probably about the same from a financial perspective as well. The one less payment every month sounds pretty good. The auto-loan is with a CU and so I also have a Savings account I could close with them.  Thanks!

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    • Vibrant
    • No more counting dollars, we'll be counting stars
    • vibrant
    • 2 yrs ago
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    vrh07 said:
    The one less payment every month sounds pretty good.

     Agreed! All else being (relatively) equal, choose in favor of cash flow.

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