Paying off low interest high balance loan first or high interest low balance loan first?
I have the following 4 student loans & 1 mortgage.
- total bal 25k 10 year @ 5.03%
- total bal 25k 10 year @ 6.29%
- total bal 75k 7 year @ 4.25%
- total bal 75k 7 year @ 6.26%
- total bal 550k 30 year @ 6.38%
If I have extra fund to make additional payment toward principal, is it always better to put more toward #5? Should I consider making additional payment toward #4 and #2 as well?
And another question is let's say #5 is out of the equation, should I make additional payment toward #4 over #2? Or should I prioritize by the interest rate as in #2, #4, #1, #3 in that order?
Posted Nov 1, 2023, 4:02 PM UTC
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