Given that I have a sum of money, should I use the money to pay off my remaining car loan or to pay into the house loan.
The car loan interest rate is 2.5% pa and the house loan is 4.25% pa.
I understand that the house loan interest is already an effective rate i.e. 4.25% pa charge on the remaining principal, but the car loan interest is based on the loan amount undertaken (not based on remaining principal), right?
Where should I put the money to gain savings?
Thank you
Lumpsum Payment on Car or House Loan