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Currently on my home I am running an 80-10-10 loan. That is:

10% down
10% 15 year loan VPR
80 30 year loan fixed 7%

Now, the 30 year loan is good. 7% plus deducting interest makes it a good thing.
The 15 year loan is variable, and is currently at 11%. Deducting the interest still makes it a bad loan.

Currently I make tiny monthly investments into indexed funds (via buy&hold), in addition I try to pay a little extra toward the 15 year loan, and I am getting ready to make my $2000 Roth contribution for the year $2000. (can you say stretched too thin?)

Should I quit investing and instead focus on paying down the 11% loan? I have it down to < $15,000 already, so in theory I could be rid of it in 4-5 years (rather than 14). Is this a more rational strategy than paying into my monthly investment?

Does the answer change if we are talking Roth IRA instead of just monthly investment into an taxed indexed fund?

thanks,
LostBoy
jim
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