should you pay off a car loan before mortgage?
My daughter is getting married in October 2007 and they will be applying for a home mortgage within the next few months.
Her fiance currently has a truck loan of about $400/month. He will be in a position to pay off the truck with a lump sum payment in a couple of months. But he's wondering if it's better to keep the loan active to show that he has been responsible in paying off the truck.
My feeling is that he should pay off the truck and that he has already demonstrated his financial responsibility with regard to this truck loan so paying it off early would not negatively affect his credit rating.
Any advice would be greatly appreciated.
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