Near-north Ontario, French River | If the terms are the same apart from interest rate then ya I agree that the highest rate is the one you want to pay. What if the terms and the principle owing vary greatly though. If you have a 200k mortgage, in the 4 year of a 15 year term at 5% interest, and a 15k loan in the 6 year of a 7year loan at 8% does it still make more sense to pay the high rate one off?? The 10k loan payment will mostly be principle at that point while the 200k loan will be heavily weighted to interest right? If I had 5k extra to lay down I'd put in against the 200k loan. |
How do you pay back your debt?
