Hi!
I just sold a property and now have the means to completely pay off a loan from my father-in-law ($80k balance, 3.0% interest, 10 yr term). My father-in-law doesn't need the money back, although ideally he'd like to have it back within 5 years instead of 10.
I think I should go ahead and crush the debt for a couple of reasons: 1) I don't like to owe family members anything, 2) the 5-yr return in the market is questionable to me right now, and 3) it's likely I may quit my job to stay home with my kids for a while which will reduce our income and ability to meet debt obligations. Planning some great side hustles but who knows how well that will work out.
Yet 3% interest is sweet. I do have a mortgage at 3.75% I could pay towards instead, but the $80k isn't going to change my monthly payment obligations unless I refinance, which eats up that 0.75% advantage.
Am I making the right move?? What am I not thinking about?