i dont feel like working it out...

Posted by RF at 11:58am Sep 23 '12
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especially if your friend already did amortization tables, which is what it is. assuming he used the right discount factors, etc. i used to be able to work it out directly, without relying on tables for discount factors, but i havent done that in a while...

mathematically, #3 is correct. even though the interest paid is higher on the larger mortgage, the difference to it that you make is the same as if you paid down the smaller one, since the interest rates are the same.

[private] is right, however, that there are other benefits to paying down the smaller mortgage first that are not included in the math. i'd pay down the smaller one first, assuming, as bob said, that there are no other investments that would give you a higher return that you could put the money into instead.
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