What would you pay first? Mortage or Student Loans?

[ElGuappo]

i just did the same thing with my 22% visa

[GreenSpottedPuffer]

Originally Posted by ElGuappo

i just did the same thing with my 22% visa

Yeah if I had credit card debt, that would be first to go!

I just got a credit card though not too long ago to get a credit rating before I could get my condo. So far I have just paid the balance at the end of each month.

[ElGuappo]

te best way to gain a credit raating (according to my buddy who worked for ING) is to carry a small ballance and make your monthely min payments. carry a ballence of like 200 and you monthely payment will be like 35 bucks. as long as you are making this payment on time every time this will really help your rating. it shows you are capible of not only carrying a balance but also capible of making your payments without issues. just be aware of unwanted credit limit raises.

[mseepman]

I would look at it this way. If you pay off most of the Student loans...you are closer to completely eliminating that payment. Once it is gone, you can then use that money to accelerate your mortgage payment or provide a buffer if times get rough.

[GreenSpottedPuffer]

Originally Posted by mseepman

I would look at it this way. If you pay off most of the Student loans...you are closer to completely eliminating that payment. Once it is gone, you can then use that money to accelerate your mortgage payment or provide a buffer if times get rough.

Good point. Thats kind of how I am looking at it.

Funny you mention a buffer...my fiance just informed me that $5000 of this money is going into one of those new non taxed savings accounts for "rough times".

[wickedfrags]

At 6% your student loan sounds like it is a "fixed rate" product rather than a variable rate product. I would be paying this down right away. All variable rate products (motgages/LOC) tied to prime will be low for quite some time (years). My variable rate mortgage is at 2.2% right now, and my LOC is 3%.

[SeaHorse_Fanatic]

Yup, pay off the student loan first, since that has the higher interest rate. Once that's gone, you can focus your $$ on paying off the mortgage. That's what I did (eliminate all debts & now only have mortgage to pay off).

BTW, my parents have the same attitude about when an inheritance should be given which is why our mortgage & mortgage payments are so low.

Anthony

[areefdream]

Just something to think about. I have no idea what your investments are but if you chose to leave them for a short while you could take advantage of two visa offers currently. Royal at 1.9 and scotia for 0.99 for an introductory 6 months. These ratesw are for balance transfers which essentially means that for .9 or 1.9% you can write yourself a cheque for whatever your limit is. As long as you pay it back before your 6 months period ends this is the lowest interest you will see. This is how I am going to help fund a house build while the builders mortgage kicks in.

[christyf5]

Pay off the student loan, you don't want that thing hanging over your head forever. Mortgages are part of the 25 year plan anyways. Student loans aren't.