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Andy Wu
  • Rental Property Investor
  • Columbus, OH
7
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Pay which houses down first?

Andy Wu
  • Rental Property Investor
  • Columbus, OH
Posted

I have both first and second mortgage of my primary home. The second mortgage rate is much higher than first.

I also have several rentals which have either 15 year or 30 year loans, they have different interest rates.

If I want to pay down the balance, which loan should I pay down first, and what's next? 

My guess is to pay down the second mortgage of my primary home. Then I don't know what should I do. Will it be my primary home first mortgage or the highest rate of rental, or the loan with smallest balance.

I am paying minimum due for all loans now.

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Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
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Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
Replied

Smallest balance first.  Then use the saved payment from the payed off loan to speed up the next lowest balance loan, and so on.

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