I have $2,600 left in student loans which are accruing 5% interest. I also have a $73,000 2nd fixed mortgage at 5.99% interest. The first mortgage is at 4.5% interest. I'm trying to decide which to apply additional monthly funds to -- the student loan (which would be nice to be done with) -- or the 2nd home mortgage which has a higher interest rate. My first instinct is to say apply any additional monthly funds (ex an extra $300/month) to the higher interest loan (the 2nd mortgage) but I'm not sure whether this has some tax advantages -- so I should put the extra funds to the student loans first. Any insights would be appreciated.

Zip Code: 02108

Thanks for your question. Please note that I moved the question to Forum on Student Loans. Please try to post to the individual forums whenever possible.

Zip Code: 01801