Best strategy for paying off car, mortgage and saving in a money market account?

[EricLThomp]

What to do in what order to come out with the most money in the end?  Do things concurrently, or do a Dave Ramsey type snowball thing?



*$10,000 is currently in a money market account making 1.85%.  Add $1,000 a month to it to maximize interest?
*$18,500 on an auto loan at 2.9%.  Pay an extra $1,000 on that loan and pay it off in a year instead of 3?
*$86,000 left on mortgage at 5.875%.  Pay an extra $1,000 and pay off in 5 years instead of 15?
* I have a small ($4,000) 401k started with maxed employer match.


I can currently afford to do the extra $1,000 to each concurrently, then once the car pays off, put the extra $1,000 into the house loan, then once the house pays off, put all $3,000 into the money market.  That’s my thought currently anyway. 

What would you do to maximize your money long term?  I want to retire in 2030 with the fattest bank account possible. 😁

[katsiki]

To be clear, you have $4000 "extra" per month, right?

I would refinance that mortgage first of all.  You won't get 3.xx% right now but you could get 4.xx%.  Many would suggest you do a 30-year refi also but I wouldn't personally.  It appears you're in a 15- year mortgage now.

* I would build-up the money market account to provide 6 months of emergency fund.  That would be my purpose, not to get interest.
* I would then throw the $4,000 per month at the car to kill that loan.
* Since you mentioned retirement in 12 years but did not mention any other retirement accounts, I would max your 401k after the car is paid off.  You might want to reverse the order here and make sure your 401k is maxed this year and next first.

Hope this helps.

[EricLThomp]

I am 15 years into a 30 year mortgage.