Posted by Bob Janova
at 2:08pm Sep 21 '12You must sign in to send Bob Janova a message
... if you assume there aren't extra conditions, early payment penalties etc, then the fact it's split into two is entirely irrelevant so where you choose to put the extra money can't matter.
Proof: you can think of the entire balance as 236,000 $1 mortgages. If there are no extra fees attached then all 236,000 of those are equivalent. Therefore paying off any 50 of them is equivalent to any other 50.
Also, remember that if you can invest that $20 anywhere that you get better than 4.375% net (probably about 6% gross, if you pay income tax), that's a better use of it.
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