How to calculate best way to pay down multiple loans w/ diff rates and and terms?
I had a similar thread in the Mortgage thread, but it's really specific to loan pay down, hoping to get more visibility.
I have a five year fixed at 2.99% with a balance of 159k maturing 2019, bi-weekly $540.
I have a 5 year fixed on my heloc at 2.59 with a balance of 37k maturing in 2020, rapid bi-weekly $122.
Is there a tool to help me figure out how to balance the payments to pay it off more efficiently?
Regardless of how I distribute the
Payment %, I'm using a fixed amount of $660 bi-weekly.
I obtained the 2nd mortgage by using the TD flexline feature of paying down my original mortgage with the yearly 15% that you are allowed to pay down using my HELOC for the funds and I lock that payment in to my HELOC as a 5 year fixed payment with a rate that was lower than my original mortgage rate 2.99 vs 2.59)
I don't have extra cash, the bi-weekly payments split between the two is equal to the total payment I was paying when it was all together on the first mortgage.
I plan to do the same in January when you are allowed to pay %15 down off your original principal and I would then put that portion on the flex line heloc and again I would keep payments the same but spread out across the three, assuming current rates are still less than 2.99% (rate of original mortgage).
So I don't know how to split out the payments using a fixed amount of $660 bi-weekly in the most efficiently way possible.
Before you ask, my rep at TD wasn't able to help me with my question.
Thank you for any feedback you can provide.
I have a five year fixed at 2.99% with a balance of 159k maturing 2019, bi-weekly $540.
I have a 5 year fixed on my heloc at 2.59 with a balance of 37k maturing in 2020, rapid bi-weekly $122.
Is there a tool to help me figure out how to balance the payments to pay it off more efficiently?
Regardless of how I distribute the
Payment %, I'm using a fixed amount of $660 bi-weekly.
I obtained the 2nd mortgage by using the TD flexline feature of paying down my original mortgage with the yearly 15% that you are allowed to pay down using my HELOC for the funds and I lock that payment in to my HELOC as a 5 year fixed payment with a rate that was lower than my original mortgage rate 2.99 vs 2.59)
I don't have extra cash, the bi-weekly payments split between the two is equal to the total payment I was paying when it was all together on the first mortgage.
I plan to do the same in January when you are allowed to pay %15 down off your original principal and I would then put that portion on the flex line heloc and again I would keep payments the same but spread out across the three, assuming current rates are still less than 2.99% (rate of original mortgage).
So I don't know how to split out the payments using a fixed amount of $660 bi-weekly in the most efficiently way possible.
Before you ask, my rep at TD wasn't able to help me with my question.
Thank you for any feedback you can provide.