Extra money to student loans or mortgage?

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I have pondered this concept for a while now. We have a pretty small mortgage, and my husband has a bunch of student loans – almost as much as the mortgage. They are at about the same interest rate. Currently we never have enough deductions to make it worth itemizing on taxes, so the mortgage interest does us no good, whereas the student loan interest gives us a deduction every year. I’ve always put our extra money on the house, but I’m wondering if that is the way to go. I’ve heard the argument that the student loans should go first to get rid of them cause you’ll always have a mortgage (we will move and upgrade sooner than later so this is probably true), but I’ve also heard that you should always pay down collateral loans first rather than unsecured loans. I’d love to ask Dave Ramsey this question, but I’d love to hear your thoughts!
Tax prep person = me 🙂 For the last 13 years. Pretty sure I’m darn good at it too. Wish I wouldn’t have to get more student loans to go back to school to be an accountant 🙁

2 Comments
  1. Reply
    dreamgirl
    May 18, 2011 at 1:09 am

    pay on your mortgage first..they can take your house,for non-payment ,but not your husband..i’m sure some wives would love to change that rule..

  2. Reply
    Outrider
    May 18, 2011 at 1:13 am

    A current tax deduction would be the way I would go. Just ask your tax prep person unless that would be you.

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