Advise on finance question

Hi!

Should I have 1K to reimburse a loan, should I give it to my mortgage which
still has 20 years to go, or to my car loan which has 4 years to go? They
both have 5.8% cost.

Many thanks!


--
--
Daniel
[url]http://perso.dromadaire.com/cimetiere/spirituel.html[/url]
[url]http://perso.dromadaire.com/cimetiere/psychophilo.html[/url]

Since neitherj will recast thwe remaining balance (they will both expect the
same full payments until the loan balance it paid in full), I'd give the
money to the auto loan.

Personally, I'd throw the money at either my savings account or my credit
card(s).

I don't see much advantage in burying money in the equity in my house
because if I want the equity out of it for any reason, I have to qualify for
a new loan. There is nothing "wrong" with having money buried in your house,
I see no point in stashing cash there. Stash your cash in a more liquid
location for access if something arises that is not foreseen at this time.

If you are not planning to keep the car until it completely falls apart --
most people keep a car something like 5 years on average, and lots of people
keep a car less than that -- I see no point in throwing extra cash in that
direction either. Driving a car that is paid for is always a good feeling,
but if you are the sort that trades a car as soon as the last payment is
made, then throwing your extra cash at a car loan might not be the best
thing.

For these two reasons, I'd stash the extra cash in my savings account, or in
my credit card balance. Having said that, my credit card balance is zero so
perhaps my outlook is a bit skewwed.

"Jeff Strickland" <crwlr@yahoo.com> wrote in message
news:y9SdneT8jNpg0afYnZ2dnUVZ_rOdnZ2d@ez2.net...[color=blue]
> For these two reasons, I'd stash the extra cash in my savings account, or
> in my credit card balance. Having said that, my credit card balance is
> zero so perhaps my outlook is a bit skewwed.
>[/color]
Good idea, that of paying down or paying off the credit card first. That
interest rate, if you carry a balance, is a helluva lot higher than the
mortgage or the car loan.
(My credit card balance is zero, and has been for many years. Best to pay
it off monthly and avoid any interest charges if you can!) Interest on
credit cards is horrendous, and can start you on a slippery slope downhill
until you're mired in debt. It's a wonderful feeling to get the mortgage
paid off, car and other loans paid off, and get some money in the bank.
You'll sleep easier and your marriage will improve, trust me. and when you
start lending out your money to banks etc in the form of CDs or other
interest bearing accounts, you've gotten on the right side of the interest
curve. Why work for your money when your money should be working for you!

"mack" <mackerel@dslextreme.com> wrote in message
news:12jldeva2ijte5e@corp.supernews.com...

<snip>


Why work for your money when your money should be working for you!



If I could just get my money to go along with that plan ...

"Jeff Strickland" <crwlr@yahoo.com> wrote in message
news:xeSdnb7cl_37QqfYnZ2dnUVZ_sqdnZ2d@ez2.net...[color=blue]
>
> "mack" <mackerel@dslextreme.com> wrote in message
> news:12jldeva2ijte5e@corp.supernews.com...
>
> <snip>
>
>
> Why work for your money when your money should be working for you!
>
>
>
> If I could just get my money to go along with that plan ...
>
>[/color]
Well, they say money talks, but to most of us, all it ever says is "Goodbye"
!

Do you get a big income tax rebate check every year?


mike



"Jeff Strickland" <crwlr@yahoo.com> wrote in message
news:xeSdnb7cl_37QqfYnZ2dnUVZ_sqdnZ2d@ez2.net...[color=blue]
>
> "mack" <mackerel@dslextreme.com> wrote in message
> news:12jldeva2ijte5e@corp.supernews.com...
>
> <snip>
>
>
> Why work for your money when your money should be working for you!
>
>
>
> If I could just get my money to go along with that plan ...
>
>[/color]

Rebate! They still give those out? I haven't gotten one of those for years
....





"Mike Hunter" <mikehunt2@mailcity.com> wrote in message
news:_9idnTIwDqQMfabYUSdV9g@ptd.net...[color=blue]
> Do you get a big income tax rebate check every year?
>
>
> mike
>
>
>
> "Jeff Strickland" <crwlr@yahoo.com> wrote in message
> news:xeSdnb7cl_37QqfYnZ2dnUVZ_sqdnZ2d@ez2.net...[color=green]
>>
>> "mack" <mackerel@dslextreme.com> wrote in message
>> news:12jldeva2ijte5e@corp.supernews.com...
>>
>> <snip>
>>
>>
>> Why work for your money when your money should be working for you!
>>
>>
>>
>> If I could just get my money to go along with that plan ...
>>
>>[/color]
>
>[/color]

"Jeff Strickland" <crwlr@yahoo.com> wrote in message
news:3--dnZJsRJUgcabYnZ2dnUVZ_vGdnZ2d@ez2.net...[color=blue]
> Rebate! They still give those out? I haven't gotten one of those for years[/color]

Good tax planning means small or NO refunds. Large rebates mean POOR tax
planning, unless, of course, you experienced unplanned for major medical
expenses.



[color=blue]
> ...
>
>
>
>
>
> "Mike Hunter" <mikehunt2@mailcity.com> wrote in message
> news:_9idnTIwDqQMfabYUSdV9g@ptd.net...[color=green]
>> Do you get a big income tax rebate check every year?
>>
>>
>> mike
>>
>>
>>
>> "Jeff Strickland" <crwlr@yahoo.com> wrote in message
>> news:xeSdnb7cl_37QqfYnZ2dnUVZ_sqdnZ2d@ez2.net...[color=darkred]
>>>
>>> "mack" <mackerel@dslextreme.com> wrote in message
>>> news:12jldeva2ijte5e@corp.supernews.com...
>>>
>>> <snip>
>>>
>>>
>>> Why work for your money when your money should be working for you!
>>>
>>>
>>>
>>> If I could just get my money to go along with that plan ...
>>>
>>>[/color]
>>
>>[/color]
>[/color]

"cimetiere" <cimetiere@spammoncanoe.com> wrote in message
news:vMr_g.34980$Da6.451677@weber.videotron.net...[color=blue]
> Hi!
>
> Should I have 1K to reimburse a loan, should I give it to my mortgage
> which
> still has 20 years to go, or to my car loan which has 4 years to go? They
> both have 5.8% cost.[/color]

Send it as a separate payment to your mortgage company requesting that they
apply it to principal. Write "Payment towards principal" in the memo
section of your check and save the returned check with your mortgage
documents (at the end of the loan you may have to account for it).

5.8% over 20 years represents more of a savings than the same over 4 -
assuming that your car loan does not have a clause prohibiting or penalizing
you for prepayment.
--
Mike Harris
Austin TX

Precisely. Why people are so willing to lend money to the federal treasury
for a year, at no interest, always seemed strange to me. ;)


mike hunt


"sharx35" <sharx35@hotmail.com> wrote in message
news:OkY_g.35755$P7.547@edtnps89...[color=blue]
>
> "Jeff Strickland" <crwlr@yahoo.com> wrote in message
> news:3--dnZJsRJUgcabYnZ2dnUVZ_vGdnZ2d@ez2.net...[color=green]
>> Rebate! They still give those out? I haven't gotten one of those for
>> years[/color]
>
> Good tax planning means small or NO refunds. Large rebates mean POOR tax
> planning, unless, of course, you experienced unplanned for major medical
> expenses.
>
>
>
>[color=green]
>> ...
>>
>>
>>
>>
>>
>> "Mike Hunter" <mikehunt2@mailcity.com> wrote in message
>> news:_9idnTIwDqQMfabYUSdV9g@ptd.net...[color=darkred]
>>> Do you get a big income tax rebate check every year?
>>>
>>>
>>> mike
>>>
>>>
>>>
>>> "Jeff Strickland" <crwlr@yahoo.com> wrote in message
>>> news:xeSdnb7cl_37QqfYnZ2dnUVZ_sqdnZ2d@ez2.net...
>>>>
>>>> "mack" <mackerel@dslextreme.com> wrote in message
>>>> news:12jldeva2ijte5e@corp.supernews.com...
>>>>
>>>> <snip>
>>>>
>>>>
>>>> Why work for your money when your money should be working for you!
>>>>
>>>>
>>>>
>>>> If I could just get my money to go along with that plan ...
>>>>
>>>>
>>>
>>>[/color]
>>[/color]
>
>[/color]

One need not do that. Any payment to a mortgage account, between due dates,
is automatically applied to the principal. Interest on a mortgage is
calculated monthly on the balance due. The interest due, on the subsequent
regular mortgage payment, is therefore calculated at the new lower balance.
Although the mortgage payment remains the same the number of subsequent
payments required will be reduced


mike hunt



"Mike Harris" <harrisremovethiswest@sbcglobal.net> wrote in message
news:4D4%g.13604$TV3.2164@newssvr21.news.prodigy.com...[color=blue]
> "cimetiere" <cimetiere@spammoncanoe.com> wrote in message
> news:vMr_g.34980$Da6.451677@weber.videotron.net...[/color]
[color=blue]
> Send it as a separate payment to your mortgage company requesting that
> they apply it to principal. Write "Payment towards principal" in the memo
> section of your check and save the returned check with your mortgage
> documents (at the end of the loan you may have to account for it).
>
> 5.8% over 20 years represents more of a savings than the same over 4 -
> assuming that your car loan does not have a clause prohibiting or
> penalizing you for prepayment.
> --
> Mike Harris
> Austin TX
>[/color]

"Mike Hunter" <mikehunt2@mailcity.com> wrote in message
news:BDadnVDaRr5rf6HYUSdV9g@ptd.net...[color=blue]
> Precisely. Why people are so willing to lend money to the federal
> treasury for a year, at no interest, always seemed strange to me. ;)
>
>
> mike hunt
>[/color]

Right On! If I ever got a refund of unwarranted tax payments from IRS,
I'd feel like a fool. I'd much sooner get a small additional bill for
unpaid taxes, knowing that it was a small loan from the government, rather
than knowing that I'd lent the government some money interest -free during
the prior year.

"Mike Harris" <harrisremovethiswest@sbcglobal.net> wrote in message
news:4D4%g.13604$TV3.2164@newssvr21.news.prodigy.com...[color=blue]
> "cimetiere" <cimetiere@spammoncanoe.com> wrote in message
> news:vMr_g.34980$Da6.451677@weber.videotron.net...[color=green]
>> Hi!
>>
>> Should I have 1K to reimburse a loan, should I give it to my mortgage
>> which
>> still has 20 years to go, or to my car loan which has 4 years to go?
>> They
>> both have 5.8% cost.[/color]
>
> Send it as a separate payment to your mortgage company requesting that
> they apply it to principal. Write "Payment towards principal" in the memo
> section of your check and save the returned check with your mortgage
> documents (at the end of the loan you may have to account for it).
>[/color]

ANY funds the bank receives in a regular payment go towards principle
reduction.

A check for $3000 finds its way to the bank. the bank takes its earned
interest for the previous 30 day period, then applies a fixed amount to an
impound account (if one exists) then applies the entirety of the remainder
to principal reduction. If the interest earned is $500, and the impounds are
$300, then $800 goes to these two fixed costs. Any remaining amount is
credited agaisnt the outstanding principle balance.

There is no need to send a separate check or memo.







[color=blue]
> 5.8% over 20 years represents more of a savings than the same over 4 -
> assuming that your car loan does not have a clause prohibiting or
> penalizing you for prepayment.
> --
> Mike Harris
> Austin TX
>[/color]

"Jeff Strickland" <crwlr@yahoo.com> wrote in message
news:ENOdnYoYdPUax6DYnZ2dnUVZ_rmdnZ2d@ez2.net...[color=blue]
>
> "Mike Harris" <harrisremovethiswest@sbcglobal.net> wrote in message
> news:4D4%g.13604$TV3.2164@newssvr21.news.prodigy.com...[color=green]
>> "cimetiere" <cimetiere@spammoncanoe.com> wrote in message
>> news:vMr_g.34980$Da6.451677@weber.videotron.net...[color=darkred]
>>> Hi!
>>>
>>> Should I have 1K to reimburse a loan, should I give it to my mortgage
>>> which
>>> still has 20 years to go, or to my car loan which has 4 years to go?
>>> They
>>> both have 5.8% cost.[/color]
>>
>> Send it as a separate payment to your mortgage company requesting that
>> they apply it to principal. Write "Payment towards principal" in the
>> memo section of your check and save the returned check with your mortgage
>> documents (at the end of the loan you may have to account for it).
>>[/color]
>
> ANY funds the bank receives in a regular payment go towards principle
> reduction.
>
> A check for $3000 finds its way to the bank. the bank takes its earned
> interest for the previous 30 day period, then applies a fixed amount to an
> impound account (if one exists) then applies the entirety of the remainder
> to principal reduction. If the interest earned is $500, and the impounds
> are $300, then $800 goes to these two fixed costs. Any remaining amount is
> credited agaisnt the outstanding principle balance.
>
> There is no need to send a separate check or memo.[/color]

Tell that to Countrywide Mortgage in California.
--
Mike Harris
Austin TX

The banking laws apply to all lending institutions, yours is no exception.


mike hunt



"Mike Harris" <harrisremovethiswest@sbcglobal.net> wrote in message
news:p2p%g.2619[color=blue][color=green]
>> ANY funds the bank receives in a regular payment go towards principle
>> reduction.
>>
>> A check for $3000 finds its way to the bank. the bank takes its earned
>> interest for the previous 30 day period, then applies a fixed amount to
>> an impound account (if one exists) then applies the entirety of the
>> remainder to principal reduction. If the interest earned is $500, and the
>> impounds are $300, then $800 goes to these two fixed costs. Any remaining
>> amount is credited agaisnt the outstanding principle balance.
>>
>> There is no need to send a separate check or memo.[/color]
>
> Tell that to Countrywide Mortgage in California.
> --
> Mike Harris
> Austin TX
>[/color]