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I have both a mortgage and student loans, as many now do. My mortgage is at 5.5 % with ~ $250k balance and my student loans are at ~ $98k with 2.125 % interest. The remaining number of payments are about equivalent (~25 years). So, the question is does it make more sense to pay down the mortgage faster through higher extra payments or get rid of the student loans asap or do a mix of extra payments on both?

Right now I think of my student loans as part of my mortgage, but the total estimated interest paid over the life of the student loans is ~$40k while the cumulative mortgage interest is >$200k. Therefore, wouldn't it make more sense to pay down the mortgage that is also at a higher interest rate, faster?

The way I pay today is a little extra to the student loans and about 1 extra payment per year on the mortgage. As my income changes I adjust the mortgage payment a little higher each year similar to my retirement savings.

Thanks

CGPhD
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I would pay down the mortgage first. It leaves you with more money in the end. If you focused on the student loans first, you'd have one debt gone, which emotionally is nice, but you'd have accumulated much more interest on the mortgage while you were busy paying down your student loans.

Sonorus
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