If i have extra money coming in every month then what should I put it towards..paying off my truck or house?

Question

Not paying off my house but putting more on it. I plan on selling my house in 3-5 years. All advice is helpful

Answer 1

Definitely your truck unless you have a 0% interest rate on that loan.  The interest you pay on your mortgage is tax deductible (if you itemize) but not interest paid on any other type of loan.

Answer 2

I get a bonus every 3 months and should put it toward my truck or credit cards, but I don't. If you make it a point to put a little bit away and put an event on the calendar, work seems so much more worth it. Plan to go camping or a short road trip. This is totally depending on how much "extra" we are talking about too. I think of it all about the quality of life. Maybe put some of it towards the loan with the highest interest rate.

Answer 3

Compare the interest rates and pay of the one with the higher rate...you'll save more money that way.

Answer 4

Your house!!!!  Vehicles are depreciating assets and  your home (even in this market) is not.  Make sure all your moneys go to the principle of the home..not the interest.

Answer 5

First off, are you saving any money? You should always reserve atleast five to ten percent of what you make in a savings account. You'll just never know when you'll need that extra cash for something. To answer your question is simple. Pay the truck off first. The reason you should pay your truck off is because every six months or so, that truck is depreciating. A house usually doesn't depreciate and if anything, appreciates (worth more). So if you pay the truck off sooner then later your not losing as much money do to it depreciating. Secondly, you plan on selling your house soon, so just pay the minimum payments on it. Why pay more?

Good luck!

Answer 6

You are on the right track.. you actually need to pay off all of your debt... Start with the smallest debt you have then work your way up.. pay off the smallest debt with the extra money then take the payments for that debt that you would be paying and add them to the next debt.. keep going up the ladder until you get to the truck... pay off the truck then work on the house... the equity you end up gaining in the house by paying cash will knock off a bunch of interest payments.

Answer 7

Two thoughts on this:

1.  Pay down the loan with the highest interest rate

2.  Interest you pay on your home mortgage is deductible (if you live in USA and itemize), therefore it makes sense to pay off the truck loan, which is not deductible unless it is a business vehicle.

Hope that provides food for thought.