Shortcut Navigation:

Question for the Money Doctors

Question submitted on Sep 26, 2013.


Hi there! I have 3 remaining debts: a mortgage, a small HELoC, and a student loan. Mortgage = $54k ($642 per month including taxes and insurance), HELoc = $12k ($137 per month), student loan = $53k ($379 per month). Interest deductions on my taxes for mortgage and HELoC, and a small tax benefit for my student loan. No credit card debt. I have been paying extra toward the student loan, but I''m wondering if it makes better sense to pay off the lowest balance (HELoC) then tackle the student loan and finally the mortgage? Thanks for your insight!


The first question is what are the interest rates and length of time you still have to pay these loans. Also, how long do you plan on staying in your home? From this limited information I would say to pay off the Heloc first. But your tax rate will also have an effect on the answer. What future debt such as a car loan or home improvement will you be added in the near future? Good luck and keep reducing your debt balances.

For additional information visit