Auto Loan vs Mortgage
Wife and I max out 401ks, IRAs, and 529 for the kid.
We have a 6 month EF.
Only debt is one auto loan (29k @ 0.9%) and a mortgage (248k @ 4.625%).
I have PMI on the mortgage, it's a conventional 30 year loan (we're almost 3 years into the loan now).
Original value on house was around $281k, not sure on value now, Zillow doesn't seem very accurate (fairly new neighborhood, added a pool, etc.).
The car payment is around $680/month.
I'm considering the following, need some opinions:
a) pay off car, frees up cash flow, would drop EF to 2 months
b) take the $29k that would pay off car and get my mortgage down to 78% of original loan value to knock PMI out, obviously this also drops EF down to 2 months
c) something else?
Our jobs are relatively stable and I believe we could build EF back up to 6 months before any potential job loss.
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