It may be that i can pay off the balloon payment to keep my car in October. Im questioning whether instead i should get a loan for that and pay the money off the mortgage instead. Interest rates are comparable on both.
I feel i should pay off the car, and my reasoning is:
a) it’ll be mine, no one can take it away.
b) once paid i can add the monthly amount im paying on pcp now to overpay monthly on the mortgage
c) we are in the house for the long term, other than paying off the mortgage quicker ive no other reason to reduce it
d) i become in a “cash” position with the vehicle
e) should something happen and i need to reduce the mortgage overpayment i can, but I’d not have that flexibility with a loan for the car
f) the baloon is slightly less than current market value of the vehicle
But somethings nagging at me that paying the amount of the mortgage is “cheaper” becuas of the loan duration.
what say the stw gurus?