Yes, the short answer is PAY IT OFF, but I'm struggling to justify greatly accelerating my payments due to interest rates and would love some input. All opinions and face punches welcome.
Current Debts:
Mortgage $122,857 at 3.75% Monthly payment $1120 (includes taxes and insurance)
Student loan $112,000 at 0%, minimum monthly payment $800 (loan from family- yes I'm freaking lucky)
Student loan $18,382.71 at 4% monthly payment 105.57
Car loan $27,863.82 at 2.1% monthly payment $488.87
Total payments/month: $2514.44
First to give background on the car, we had been planning to save and buy a new-to-us mini van in the next 18 months but recently totalled our POS car. We purchased a low millage Toyota Sienna. Yes a more than 5 person car was needed due to number of children. Neither DH or I are good with car skills so searching through criags list was less than ideal. We plan on driving it to 300,000 mi, so while not a Musctacian decision it was well thought out and we are happy with the car choice.
Given the interest rates we're dealing with I am loath to pile on extra principle payments, but we're talking a BIG chunk of our monthly cash flow toward debt. Maintaining them isn't a problem (Income projected to be $140,000 before taxes in 2015). Prior to taking on the car loan I was letting these ride out and focusing on maxing our tax advantaged accounts (one 401k and two IRAs), then paying and extra $2,400/year on the 0% loan because it is a generous family member and I feel better paying back $12,000/year vs. $9,600 minimum agreed upon, and then planed to open a taxable account. We don't project a change in jobs situations but life is never certain.
Until this past month we have been saving 50% . Past month was hard for multiple reasons but I still project a 50% savings rate for the year.
Thoughts?