What would you pay first? Mortage or Student Loans?

[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

[jus68]

Don't forget that student loan interests are tax deductible however I've also done the calculation and even with the tax savings, paying off student loan is more benefitial as your current student loan payment in the bank's eyes will give you a better leverage forthe buck. Also get your banker to look into RRSPs.

On a seperate note, for your new tank build you could try to claim it on your 2009 tax return and consider it as home Reno as that'll get you 13+% tax credit back up to $1300. Disclaimer: should talk to tax professional or CRA for further interpretation of 2009 budget.

[Delphinus]

Mortgages are more of an investment in yourself. It's like paying rent to yourself. If the payments aren't killing you, it's not a problem to leave it.

Student loans on the other hand do tend to be more stifling. I found my life improved hugely when I finally paid those off.

Now, if you were to ask about whether to invest in RRSP's or pay down your mortgage .. I have some interesting life stories I could share about that one day over a beer or other beverage of choice, about that particular choice. Actually it's probably quite a huge rant. So um .. since you didn't ask about that one, I'll leave it for another day (and a beer. Don't forget the beer.)

[GreenSpottedPuffer]

Originally Posted by jus68

Don't forget that student loan interests are tax deductible however I've also done the calculation and even with the tax savings, paying off student loan is more benefitial as your current student loan payment in the bank's eyes will give you a better leverage forthe buck. Also get your banker to look into RRSPs.

On a seperate note, for your new tank build you could try to claim it on your 2009 tax return and consider it as home Reno as that'll get you 13+% tax credit back up to $1300. Disclaimer: should talk to tax professional or CRA for further interpretation of 2009 budget.

I do already have RRSPs. She had me do that right away when I joined the bank.

I am going to look into that Reno claim. Its funny because when they announced it, my fiance said right away I wonder if you can claim the new tank stand since its kind of a house reno. I might be bolting it to the wall in one spot too which I figure should be considered a reno...maybe not though

[GreenSpottedPuffer]

Originally Posted by Delphinus

Mortgages are more of an investment in yourself. It's like paying rent to yourself. If the payments aren't killing you, it's not a problem to leave it.

Student loans on the other hand do tend to be more stifling. I found my life improved hugely when I finally paid those off.

Now, if you were to ask about whether to invest in RRSP's or pay down your mortgage .. I have some interesting life stories I could share about that one day over a beer or other beverage of choice, about that particular choice. Actually it's probably quite a huge rant. So um .. since you didn't ask about that one, I'll leave it for another day (and a beer. Don't forget the beer.)

I won't ask until your out west one day and we can sit down for a nice cold beer but I have a feeling I know what kind of stuff you have to rant about.

When are you making your way out West? I hear you mention it once in a while...make sure you let us all know if you do

[GreenSpottedPuffer]

Originally Posted by 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

My parents just figure they can help more NOW than later and also they want to see us happy and not renting forever. So they paid downpayments on places for my brothers and I. They named a number and we had to come up with what we could afford ontop of that kind of thing.

Its interesting because they wouldn't do it though until we were done school and during school I was renting. My monthly payments were more than my mortgage payments now and I didn't have a great job since I was in school full time. They paid my tuition for school but I had to pay the rest...books, equipment, cost of living, ect. So I have full student loans basically. I remember at the time knowing they were going to spend money on me to get me a place but used to be upset that they wouldn't pay my schooling even though they could. Now I look back and I am very glad I had to do that part on my own.

Funny the things your parents try to teach you

[michika]

Pay off the student loans! Its a huge feeling of accomplishment when you did. While I didn't have student loans, I paid my own way through school, but for my last year I had to take out a Line of Credit. Paying that thing off at the end of that year was very euphoric.

Tony I totally want to hear your rant now! Once I have some reasonable beer, as in some that isn't labeled Lucky or Big Bear, and is not strictly a beer bong worthy drink, I'll definitely have you over.

[Pan]

Originally Posted by GreenSpottedPuffer

I think the student loans.

You guys are right.

I actually just want these stupid student loans GONE anyways. Seems like its been so long since I was in school yet I am still paying for it.

Man it would be nice to just use the $14 000 or so on Reef stuff But not a cent is going to this hobby...

If the govt finds out you had that kind of money and did not pay your student loans done. They will up your minimum payment without a seconds hesitation. It will not be in your benefit, mortgages are sort of expected to be paid long term...student loans are not....anymore. They have cracked down on them.

[awa1979]

I'd pay off the student loan if it has the highest interest rate.

(your debt makes me glad I went to school in California, low tuition with federal and state grants, made it possible to come out debt free.)