Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I believe that most car loans are interest front-loaded. That means that paying extra money doesn't actually reduce the amount of interest you pay on the loan. While you may receive an mortgage interest deduction from the IRS, don't let the tail wag the dog. You will wind up (in the long run) paying much less in interest on your mortgage by paying extra principal each month.

Of course, if you believe that you can achieve a higher rate of return on that $100 by investing it (and you may very well do so), then use the money that way.

Good luck!
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.