What would dave ramsey finanical guru recommend? Student loans vs. Mortgage?
have about 36K within student loans and 123K in mortgage..... student loan is fixed at 1.625% and the house is fixed (30yr/2005) at 5.875. Soon as I have a sports car payed off it these will be our only debts..... would dave still recommend to focus on the student loans despite the LOW interest rate--- or would you contemplate he would say start working on the mortgage instead?
Answers:
I infer he'd go with getting the student loan payed stale, it's the smaller of the last two.
I dont know what he would say, despite being competent to pay off the student loan quicker, I would step for the mortgage (as long as there is no prepayment penalty. In the long run it would release you more money and will build you more equity in case you ever involve it.
Pay off the student loan. Then build your 3-6 month emergency fund, next start your 15% retirement funds then pay extra on the house.
Since the house loan is so much more, he requirements you to have your emergency fund and your retirement going so that you can have fun while paying rotten your home loan. The student loan is just a noose around your décolletage, even though they interest rate is really low, you could use that monthly payment to fund your retirement when you are done with the debt & emergency fund!
Below is a connect to his website to almost your exact question.
Keep following his advice, you will win beside money. Source(s): http://www.daveramsey.com/etc/askdave/?i…
www.daveramsey.com
I believe that Dave would still tell you to settle off the student loan, as baby step 2 is completed when you are debt free except for the house.
I think he would want you to get rid of the student loans. It's the smaller stability. You can use the mortgage as a tax deduction. His usual philosophy is compensate off the smaller debts first.
Related Questions:
What's the difference between a mortgage broker, and loan officer?
thanks!! A loan officer is a person who works for a ridge or lending institution. He is the one who does the work on the loan, gathers the information, and interfaces near the person who wants to borrow the money....
Answers:
I infer he'd go with getting the student loan payed stale, it's the smaller of the last two.
I dont know what he would say, despite being competent to pay off the student loan quicker, I would step for the mortgage (as long as there is no prepayment penalty. In the long run it would release you more money and will build you more equity in case you ever involve it.
Pay off the student loan. Then build your 3-6 month emergency fund, next start your 15% retirement funds then pay extra on the house.
Since the house loan is so much more, he requirements you to have your emergency fund and your retirement going so that you can have fun while paying rotten your home loan. The student loan is just a noose around your décolletage, even though they interest rate is really low, you could use that monthly payment to fund your retirement when you are done with the debt & emergency fund!
Below is a connect to his website to almost your exact question.
Keep following his advice, you will win beside money. Source(s): http://www.daveramsey.com/etc/askdave/?i…
www.daveramsey.com
I believe that Dave would still tell you to settle off the student loan, as baby step 2 is completed when you are debt free except for the house.
I think he would want you to get rid of the student loans. It's the smaller stability. You can use the mortgage as a tax deduction. His usual philosophy is compensate off the smaller debts first.
Related Questions:
What's the difference between a mortgage broker, and loan officer?
thanks!! A loan officer is a person who works for a ridge or lending institution. He is the one who does the work on the loan, gathers the information, and interfaces near the person who wants to borrow the money....