Which mortgage should I pay extra to each month?
October 22, 2012 10:18 AM Subscribe
I am not wonderful at math. I am trying to figure out which mortgage I should pay an extra principal payment to each month. Will you help me?
posted by rabidsegue to Work & Money (11 answers total)
The details are as follows:
1. Primary residence has a mortgage of ~355000 at 3.875% for 30 years (new refi).
2. Rental property has a mortgage of ~135000 at 3.875% for 15 years (new refi).
I am hoping to pay an additional $1000/mo toward one of these. What logic would you use to figure out which mortgage to put this toward? Which payment will save me more?
I have looked at bankrate mortgage calculators but I get confused when I think about the 15 vs 30 year loan. Also, once the rental mortgage is paid off (either early or at year 15), I would be able to put that monthly rent received toward extra monthly payments on my principal residence, in addition to the $1000/mo.
Thanks for your insight!