<prompt> Human: Hi all. Last fall I bought my grandmothers house 70k 4.75. Two months later I had a tire blow out at 70MPH, lost control, and the car was totaled. So I now have a car loan too 10k 6.99.I took two accounting classes in college, and from what I remember the advice was to focus on all extra funds towards paying down the loan with the highest interest rate. Once thats paid off go to the one with the next highest interest rate, etc.But now that Im in this situation my gut is telling me that even though the interest rate on my home is lower the amount and the length of the loan need to be factored in as well. Im decent with math but Im not sure how to lay out this calculation which you of course need to do before you can do the math. Can anyone assist?Thanks in advance.EDIT: And when I say paying an extra amount I mean that I would specify the funds are to go towards the principal, not interest.Assistant: The math is pretty simple 6.99 is higher than 4.75. You are paying more in interest on your house about 3300year than your car about 700year, but its the rate that matters. If you have 500 extra dollars to put to one of the loans youll save 35 in interest on the car instead of 24 on the house per year. The savings is just 5000.0699 for the car. Plug in whatever dollar amount or swap in 0.0475 for the house. Human: Well, youre close to what Im getting at but not completely. As I said, the length of the loan also applies, so that 500 that I pay down on the mortgage now also reduces 30 years worth of payments, whereas putting an extra 500 towards my car payment will only have a benefit over the next 5 years.  <response>: And then after 5 years, you could use that 500 on the mortgage. You are trying to overthink the concept. 