What would you pay off first?

Discussion in 'Financial Planning' started by zuzu111, 10th Jul, 2021.

Join Australia's most dynamic and respected property investment community
  1. zuzu111

    zuzu111 Member

    Joined:
    17th Oct, 2018
    Posts:
    11
    Location:
    nsw
    loan a) 489k fixed @ 3 years @2.01% - 28 years
    Loan b) 75k variable @2.69 - 28 years
    Both secured against same property.

    After paying minimum payment principal and interest each week have about $600 a week to make extra payments.
     
    zuzu111, 10th Jul, 2021
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    the variable has a higher rate

    the fixed doesnt probs allow that much extra repayment before break costs


    ta
    rolf
     
    Rolf Latham, 10th Jul, 2021
    #2
    craigc likes this.
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,997
    Location:
    Australia wide
    but were the funds used by
    - the same borrower?
    - for the same asset?
    - with that borrower as the owner?
     
    Terry_w, 10th Jul, 2021
    #3