Here is a question for any one here with good calculating skills.
We're currently working on wiping out our debt and not sure which would be better to pay off first.
Two debts owning are:
Home mortgage of $72,000 at 5.31% locked in until 2016 with payments of $303.44 bi-weekly. Annual prepayment privilages of 25% and bi-weekly payment increase of 20%. Value of property is approx. $175,000 to $160,000.
Secured Line of Credit of $40,000 at 3.25% variable rate interest payment at $108 monthly.
We are currently debating on paying down the mortgage as much as possible until the rates on the LOC start climbing and just maintain the interest payments on the LOC for the time bieng.
We figure we can put approx. extra $2000 per month towards either debt as we just finished paying off a $25,000 unsecured LOC over the last seven months.
Any input would be greatly appreciated.
We're currently working on wiping out our debt and not sure which would be better to pay off first.
Two debts owning are:
Home mortgage of $72,000 at 5.31% locked in until 2016 with payments of $303.44 bi-weekly. Annual prepayment privilages of 25% and bi-weekly payment increase of 20%. Value of property is approx. $175,000 to $160,000.
Secured Line of Credit of $40,000 at 3.25% variable rate interest payment at $108 monthly.
We are currently debating on paying down the mortgage as much as possible until the rates on the LOC start climbing and just maintain the interest payments on the LOC for the time bieng.
We figure we can put approx. extra $2000 per month towards either debt as we just finished paying off a $25,000 unsecured LOC over the last seven months.
Any input would be greatly appreciated.