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      02-16-2013, 08:02 PM   #1
Bored at work....
schnell325's Avatar

Drives: '08 M3, '15 F80 M3 soon!
Join Date: Aug 2007
Location: BC

iTrader: (5)

Responsible money advice-bankers wanted!

I'm getting back ~$15,000 from income tax.

Now we all know refunds should be spent solely on our M's, BUT here's a "hypothetical" situation.

I have a Line of Credit currently @ 3.5%, and I have a rental property with a mortgage @ 3.09%. Do I throw the $ on the LOC or on the mortgage.

My first thought is the LOC for the simple fact it has the higher interest rate (~$60,000). But, would the mortgage benefit in the long run by knocking that much off the principle (which is currently at ~$113,000) thus decreasing the length of the mortgage?

'08 M3: AA G2L3, Catless X-Pipe & Sig Series Rear. AP rods. TC Kline EDC Coil Overs. MRF Alum Sub Frame Bushings. TMS Delrin Diff'l Bushings. BFI Motor Mounts. Recaro PP. BMW Perf Steering Wheel. P3 Gauge. PS Overflow Kit. APEX ARC-8 18"x9.5"/10.5". Conti Slicks 275/35F 305/30R. Stoptech Pads/SS Lines. Cantrell Brake Ducts.