Money Question / Mortgage / HELOC - $12,500
I have some money coming in at the end of the month. $12,500
Option 1.
Pay HELOC 3.5%, I owe $30,000
Option 2.
Pay Mortgage 3.0% Fixed until 2016, lump sum, owing balance is $270,000.
Both ways I cut down debt by $12,500. I don't want to put in RSP, TSFA, I have enough in those. Basically Option 1 or 2?
I do plan on buying a new house in 1.5 - 2.5 years.
What way will I be ahead more?
Option 1.
Pay HELOC 3.5%, I owe $30,000
Option 2.
Pay Mortgage 3.0% Fixed until 2016, lump sum, owing balance is $270,000.
Both ways I cut down debt by $12,500. I don't want to put in RSP, TSFA, I have enough in those. Basically Option 1 or 2?
I do plan on buying a new house in 1.5 - 2.5 years.
What way will I be ahead more?