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      02-16-2013, 07:02 PM   #1
Bored at work....
schnell325's Avatar
Drives: '08 M3,'11 335xi
Join Date: Aug 2007
Location: BC

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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 E92 SG M3: AA G2L3 snail, 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's. BMW Elec Perf Steering Wheel. P3 Vent Gauge. PS Overflow Kit. LUX V3. APEX ARC-8 18"x9.5"/10.5". Conti Slicks 275/35F 305/30R. Stoptech Pads/SS Lines. Castrol SRF. Cantrell Motorsports Brake Duct Kit.
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