<prompt> Human: I have two loans mortgages with the same interest rates. One is a long term loan with 32 years left, the other is a smaller loan with 2.5 years left of payments.I can start making small incremental extra payments into one of them.Is it better to pay off the larger debt or the smaller?It seems to me like in the long term it would be better to pay off the larger debt, but maybe I dont see things clearly.  <response>: Since the interest rates are the same, pay the smaller balance first. This way you will be able to free up some cash flow sooner. Additionally, a larger long term loan being paid over a long time as agreed looks great on your credit report. 