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

Drives: 2015 F80 M3//2016 F82 M4 GTS
Join Date: Aug 2007
Location: Comox Valley

iTrader: (7)

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?

Grey Matter:2008 E92 M3:608/425. SG/PS SOLD!
Dark Matter:2015 F80 M3:495/505. AB/CB
Anti Matter :2016 F82 M4 GTS --- IT IS HERE!!!