feedback wanted: big loan or car loan first?

[Gruntina]

I do want savings so bad!!! I have many goals I can not wait to start achieving on them. I have been living at my job lately and never feel I am at home just so I can pay these two darn things off! But I guess that is a big goal there... to pay off both loan as soon as possible so I can start saving. I am so tempted to start saving now but I know I would only be cheating myself.

[Gruntina]

Oh one more thing, I am debating right now on quitting my second job or not. This job is what helped me pay the large monthly payment to my debts. I was planning to stay there another 9 months till it’s paid off. Right now, there is a bad flea infestation and I am doing everything I can to control my room but the owner is not going to exterminate the home. I am living without my cat (cat is at my other apartment where friends are subleasing) and I don’t feel like home at all. Seems like a no win-win situation so this might change my financial plans and result in longer time paying it off.

[b4freedom]

Originally Posted by autoxer

To come out ahead after the earned interest is taxed, you would need to get more than 5.25%. I would pay down that 3.95% over storing money in a high yield savings, unless I had certain savings goals.

What rate would I need for a 5.625% mortgage?

[autoxer]

Originally Posted by b4freedom

What rate would I need for a 5.625% mortgage?

I'm not sure. You would also have to take into account the amount you deduct from your taxes for mortgage interest, so it would only need to be slightly higher than your mortgage interest rate. If you are socking away money into a brokerage account that has more potential for growth & will be taxed at the long term capital gains rate, then you will be better off doing that than pre-paying your mortgage loan. If it is going into a Roth IRA, then it won't be taxed at all, so that also helps your chances of coming out ahead even more.

[FrugalBachelor]

save up a couple grand and buy a mechanic checked vehicle outright. no payments...just routine maintenance...and people..if you want your car to last, you HAVE to get periodic oil changes. It's worth every penny to your engine.....I had a 93 mazda 323 hatchback with 90,000 k on it. It rans like it was brand new. I changed the oil and kept maintenance up on it and man that was a great little car..i miss it.

[Ima saver]

We always do that, oil changes every 3000 miles. With the vette, it only has to be changed about every 10,000. The car tells you when to change oil.