Pay off primary property or investment property first?

[Ian Hutton]

Hey BP I’m debating about paying off my investment home first or primary property first. 
(A little background) 

Our primary home has a balance of $327,000 at 2.9% interest 

While our investment home has a balance of $88,000 at 6.4% interest 

I plan on paying off both back to back by recycling whatever extra income I have, but was weighing the pros and cons of which to pay off first. Thank you in advance 

[Blake McWilliams]

Hey @Ian Hutton!  Personally, I would pay off the higher rate first.  With your primary, assuming its a fixed loan, a higher percentage of your payment is going towards principle pay down (less wasted dollars).  Honestly with an interest rate like that you could even not pay off your primary and put any excess capital in a high yields savings account and be financially further in the long term.  

All in all though whichever method you choose congratulations on the steps towards financial freedom!

Cheers!