What would you do?

[ifonlyIknew]

Home equity loan interest rate has decreased. Payment was 1300, but is now 950. The terms of the loan is 10 years interest only then final 20 years fixed rate. Currently in year two of interest only portion. No plan to move.
Question:
Would you sent extra 350 to HELOC principal or pay down 10,000 car note?

[zetta]

What are the interest rates and outstanding balances on the HELOC and car loan? I'd probably recommend paying down the one with the highest interest rate first.

[whitestripe]

depending on the interest rates, i would look into paying off the car loan asap, as a house is termed a good asset and a car isnt.

[dardhel]

Originally Posted by whitestripe

depending on the interest rates, i would look into paying off the car loan asap, as a house is termed a good asset and a car isnt.

I agree with whitestripe, if the interest rates are comparable pay down the car loan.

[maat55]

Do you have an EF?
What is the interest rate on the car?

You save ?% on the future mortgage. Could be high or low.

[ksluis62]

With no plan to move, you might consider a refinance to roll both mortgages into a single, fixed rate mortgage. 15 year term if you can afford it. You'd be amazed at how much you chew away at the principle with a 15 year term versus 30 year term (and especially compared to interest only, which is what you're doing now with the HELOC!). I'm assuming here you have a 1st mortgage. If not, you can consider a new 1st to replace the HELOC. Lock in these great rates and start paying down principle in a serious way.

[swanson719]

I would pay down the car loan first, then use the money from the car loan and the extra $350 to pay towards principle on the HELOC. Or, if you're up for it, refi the HELOC and your mortgage into one big loan on a low interest rate and get rid of the interest only crap.