Pay off car or nah?
I have 10k left on my loan @2.5%. Should I pay it off now, or keep making payments? Going to buy a place and move out of my mom’s basement in <2 years.
Think about it. Home loan would come at >3apr if you are getting 2.5 apr for car loan. Why pay off use the same money for down payment or other things. You will end up paying higher interest if you try and get the same amount outside. Moreover closing an account hurts your credit score.
Yes, but if I pay it off and stick the monthly payment in HYSA, I’d end up with >10k over the remaining length of the loan right?
Minimizing the amount of interest you pay is more important than keeping accounts open in order to increase your credit score.
Hell no dude 2.5% is barely above inflation. Invest your money in index funds instead.
Not sure if it’s wise to stick downpayment needed in <2 years in an index fund. Contributing 75% into HYSA right now and 25% into index funds.
Sounds like you want low risk, which is smart for money you plan to need in the near-term. I’d suggest high interest savings, a bond fund like BND, or I-Bonds from the treasury (if withdrawal is more than year out and you don’t mind the 3 month interest penalty for withdrawing I-Bonds before 3 years) I-Bond issue: the treasury direct website is shitttttt
Put the money in high rate checkings. For example, Provident credit union has a checking account with 2.1% apy.
Oh man, do you live in mom’s basement? What is your age and TC?
Homes in the Bay Area have basements? Where? Basements are usually an eastcoast thing I thought
TC?