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rated:
I have about $20k to either put towards one of my loans or perhaps invest if it makes more sense. Traditional thinking tells me to put the $$ towards the highest interest rate (house) and that's the best tax deduction I have left.  Any better ideas?  Saving accounts, 401k's, IRA's, 529's are all VERY healthy.

Vehicle #1 -
$55k current est. value
$48k loan
$42k current balance
2.24% interest

Vehicle #2 -
$65k current est. value
$35k loan
$24k current balance
2.99% interest

House
$525k est. value
$360k loan
$170k balance
4.125% interest (roughly 15 Years Ahead on payments)
 

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rated:
wasupdu said:   I have about $20k to either put towards one of my loans or perhaps invest if it makes more sense. Traditional thinking tells me to put the $$ towards the highest interest rate (house) and that's the best tax deduction I have left.  Any better ideas?  Saving accounts, 401k's, IRA's, 529's are all VERY healthy.

Vehicle #1 -
$55k current est. value
$48k loan
$42k current balance
2.24% interest

Vehicle #2 -
$65k current est. value
$35k loan
$24k current balance
2.99% interest

House
$525k est. value
$360k loan
$170k balance
4.125% interest (roughly 15 Years Ahead on payments)

  What is your effective rate on the mortgage (after tax deduction)?
Assuimh you are doung very well income-wise to support your expensive cars and otherwise, I would be tempted to invest the 20k for the long term.

rated:
Troll much?

Someone with these numbers wouldn't ask "what to do with $20K", because they'd already know the answer.

rated:
The proposed car to home value ratio is intriguing. Maybe it's not even so unusual in the many areas where decent homes can go for $150k - car prices don't vary so much regionally. But ours is more like 1/200, vs 1/4.375 here.

rated:
If this were me (without full financial background), I'd pay towards vehicle #2 with the $20k. As soon as paid off (soon I'd think), put that now retired car payment towards your home.

rated:
I'd tackle the 2.9% car but these are all very close.

You have likely made a mistake buying such expensive cars from a financial point of view. Be sure to keep them 10 years or more.

rated:
Call your insurance agent about car #2. With a loan you undoubtedly have full coverage with a deductible of $500 or less. If it were paid off and you could move to a higher deductible you may save quite a bit on car insurance.

rated:
Thanks for the replies, guys.

@fwuser12 - Pardon my ignorance, but I'm not sure what you mean by "effective rate on the mortgage." it equates to about a $7k deduction from interest annually.
@dhodson - Not sure what to say here. Vehicles rarely make financial sense, but I really enjoy them. This is the one area I splurge on. Other vehicles are paid off.
@berlinsmommy - Insurance is surprisingly reasonable. Total auto insurance with $500 deductible for 4 vehicles is about $220/Mo when all are active.

Edit: both vehicle loans are unsecured, so insurance requirements are irrelevant. 

rated:
Effective rate on mortgage would be your Apr after the interest deduction.

20k isn't a lot given your situation. Do you have an emergency fund? That would be enough money to pay your bills for 3 to 6 months if you lost your job. If your liquid enough to cover yourself then I'd throw the money straight at the 2.99 car loan.

rated:
wasupdu said:   
Edit: both vehicle loans are unsecured, so insurance requirements are irrelevant. 


Unsecured auto loans? So if you stop paying the loan they won't come get your car? I've never heard of a personal loan with a rate that low.

rated:
Mathematically, I think it makes sense to hit the mortgage.

Behaviorally, there's a thought that you can get out of debt quicker through the positive reinforcement of paying off small loans. There's something about discharging an entire loan that just might encourage you to put more of your income towards your debt. Under this theory, I'd pay off Vehicle #2 ASAP. Once Vehicle #2 is payed off, I'd put the money formerly going to vehicle #2 to vehicle #1. When both are discharged, THEN I'd pay all that extra on the house.

I don't much miss the mortgage interest deduction.

rated:
kriskos4 said:   wasupdu said:   
Edit: both vehicle loans are unsecured, so insurance requirements are irrelevant. 


Unsecured auto loans? So if you stop paying the loan they won't come get your car? I've never heard of a personal loan with a rate that low.

Lightstream?

rated:
Bend3r said:   
kriskos4 said:   
wasupdu said:   
Edit: both vehicle loans are unsecured, so insurance requirements are irrelevant. 


Unsecured auto loans? So if you stop paying the loan they won't come get your car? I've never heard of a personal loan with a rate that low.

Lightstream?

  
Never heard of 'em...pretty cool.  What's the benefit of an unsecured loan over a typical auto loan?  Unless you plan to default of course.

rated:
Dunno... but you could go get an unsecured loan to buy and then afterwards get a normal secured loan on top of it (Borrow twice the purchase cost)

rated:
Bend3r said:   
kriskos4 said:   
wasupdu said:   
Edit: both vehicle loans are unsecured, so insurance requirements are irrelevant. 


Unsecured auto loans? So if you stop paying the loan they won't come get your car? I've never heard of a personal loan with a rate that low.

Lightstream?

  Bingo.  They also happened to be the lowest rates at the time vs the dealers

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If you pay off a car, are you going to go buy another?

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beatme said:   If you pay off a car, are you going to go buy another?
  Haha.. I actually think I'm content for 3 years or so unless something drastically changes. My wife will get a new vehicle in the next 2-3 months, but that'll likely be all cash or a very minimal loan (~$20k or so)..

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