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would it be smarter to pay my car off or save the money for a down payment on a house with our tax return?

 
krazyash023

Asked by krazyash023 at 1:07 PM on Feb. 24, 2009 in Money & Work

Level 2 (10 Credits)
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Answers (15)
  • Id save the money for a house or just in case things get worse out there. You never know.
    gemgem

    Answer by gemgem at 1:13 PM on Feb. 24, 2009

  • if you pay of the car then you don't have to worry about accruing the extra interest, and then save what you would have been paying for your down payment.
    coala

    Answer by coala at 1:09 PM on Feb. 24, 2009

  • I'd say it depends on when you're thinking of buying a house. If it's soon, I'd save it for the DP. If not, pay the car off and then the money that you spent for that car bill put away and save it for the down payment when the time comes.
    Anonymous

    Answer by Anonymous at 1:10 PM on Feb. 24, 2009

  • We are paying off our car, because we pay $400 a month for our car payment. Once we have that extra $400 a month we will have more for our house payment. Of course our situation is a bit different because we'll be doing a VA loan, so we don't need a down payment or closing costs.
    toriandgrace

    Answer by toriandgrace at 1:11 PM on Feb. 24, 2009

  • I want to buy a house as soon as we find the perfect one for us now. So I would like it to be this year. :) But I know it would be smarter so we wouldn't have all that interest, but I really want a house and would hate for something to come up and us not have the money.
    krazyash023

    Answer by krazyash023 at 1:12 PM on Feb. 24, 2009

  • I would pay the car off, then every month pretend like you still have to make your car payment and put that amount of money into savings for yoru house!
    mommyBrooke849

    Answer by mommyBrooke849 at 1:12 PM on Feb. 24, 2009

  • whats a VA loan?
    krazyash023

    Answer by krazyash023 at 1:12 PM on Feb. 24, 2009

  • pay off your car, it's better to have one less payment, expecilly when you are applying for the house loan
    SMWOODS

    Answer by SMWOODS at 2:05 PM on Feb. 24, 2009

  • VA loans are for Military Veterans
    customcat2000

    Answer by customcat2000 at 2:06 PM on Feb. 24, 2009

  • I say pay off your car, then instead of thinking you have the extra money for something else, act like you still need it for a car payment and put it in a savings account, that way you are getting rid of your car payment and getting money for a sown payment on a house saved up also.

    If someone else said this sorry I didn't read all the answers.
    ednakrabapple

    Answer by ednakrabapple at 2:32 PM on Feb. 24, 2009

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