[pinkeyy501]

We bought our first house last summer and currently have 2 mortgages for this house. I would like to put extra $500 into either savings or to pay principal for our mortgage. I think it's a better deal for us to paying extra principal towards our mortgage than to put $500 monthly into savings or CD account. If I am correct, which mortgage should I put the $500 on? So far, we've been only making the minimum payment on the both mortgages. Here's the breakdown on our mortgage:

<B>Mortgage one</B> - 30 yr fixed
Monthly minimum payment - $3,054.70
Principal Balance on 3/14/06 - $511,567.71
Interest rate - 5.875%

<B>Mortgage two </B>- 15 yr fixed
Monthly minimum payment - $850.12
Principal Balance on 2/1/06 - $93,772.42
Interest rate - 6.625%

Which is best??
<B>Option A: </B>Pay $500 to Mortgage one principal (big loan)
<B>Option B: </B>Pay $500 to Mortgage two principal (small loan)
<B>Option C: </B>Pay $250 to Mortgage one AND pay $250 to Mortgage two
<B>Option D: </B>Put extra $500 into savings or CD account

We would appreciate your input.

Thank you!

- pinkeyy501