Which Debts Should I Pay First?

[Scott J.]

There are a lot of brilliant minds on here and I'd love your advice.

My wife and I have been debating which debts to pay extra money towards. Pay the highest interest first? Pay the lowest balance first to free up that payment? Don't pay extra to anything and save for another property?

Here are the debts:

$470k @ 4.75% -- two houses on one lot, live in one and rent the other. Pay a PMI of $200/mo until debt is down to $416k. I HATE paying PMI as it's just money down the toilet. But there's a long way to go until it's gone.

$257k @ 4% -- rental SFR

$27k @ 0.9% -- car loan

Knock out the car loan to free up the payments? Pay the $470k loan to get rid of the stupid PMI? Not pay anything and just save for another RE deal?

Thanks for your advice.