Should I pay off my car loan or save that money for down payment for home?
June 23, 2009 7:54 AM Subscribe
Should I pay off my car loan before getting a mortgage, or use that money for down payment?
posted by zavulon to home & garden (10 answers total) 1 user marked this as a favorite
I'm currently shopping for a home and saving for a down payment. I have ~ 16K left on my car loan. I can either pay it off quicker, saving money on the interest... or save that money for the downpayment.
What should I do? The interest rate on the car loan is higher than the mortgage I would get.. so theoretically, I would save money by paying it off earlier - BUT the money that would go toward paying off the car loan is the money that will not go towards my downpayment.
Any help would be appreciated.