<prompt> Human: I have two outstanding loans - 90,000 left 3.5 on a home loan 25 years left on the loan, recently refinanced and 26,000 1.9 on a 6-year car loan. I have an extra 200 to pay down on principal each month... what would be the better option? Thanks.  <response>: Whats your goal?You probably have higher ROI options, even if just investing that in an IRA or 401k. If you want more cash flow faster, pay the car loan. IF you want to pay less interest overall, pay the mortgage. It may be less beneficial than you think if you are able to itemize on your taxes and deduct mortgage interest. 