Pay off Debt vs Investing

[Wendy Carbone]

Hello everyone,

I am so excited to have found this awesome resource and look forward to learning as much as possible from all you seasoned investors. Here is my situation: I have paid nearly all my debt. I now owe only a car payment at 1.9% interest with 5 years left and a balance of 38k, my home mortgage at 3.375% and two investment properties. One has a balance of 22k with 12 years remaining at 5.375% (I had refinanced to a 15 year mortgage 3 years ago and started double payments) the other has a balance of 40k with 23 years remaining at 7.5% and paying PMI. These two properties are probably worth about 65k each. I am able to pay off all of these debts with money left to invest but not sure if that is the best plan. Is it better to use other peoples money? I am thinking only if you can borrow it cheaper than the rate you are paying interest??? Def looks like I need to pay off the 40k with the higher interest rate and PMI since I can borrow cheaper than that. Thanks in advance for your help!