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Question: Should I pay off my car loan or save that money for down payment for home?

Posted in Auto Loan Advice | Comments Off
19
Jan
2010

Should I pay off my car loan before getting a mortgage, or use that money for down payment?

I’m currently shopping for a home and saving for a down payment. I have ~ 16K left on my car loan. I can either pay it off quicker, saving money on the interest… or save that money for the downpayment.

What should I do? The interest rate on the car loan is higher than the mortgage I would get.. so theoretically, I would save money by paying it off earlier – BUT the money that would go toward paying off the car loan is the money that will not go towards my downpayment.

Any help would be appreciated.
Thanks!!!
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