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      02-16-2013, 07:02 PM   #1
schnell325
Bored at work....
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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?

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