Pay off Mortgage - does it make sense?

Discussion in 'Mortgages and buying and selling homes' started by adox, Jan 9, 2017.

  1. adox

    adox Frequent Poster

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    Last edited: Jan 9, 2017
    We are just over 16 years into a 30 year mortgage. At the start of last year the capital left on it was approx €85,000.

    However after coming into some money late last year, we decided we would pay it off the mortgage. It has reduced it to approx €25000. I have asked for the monthly payments to remain the same and the length of the mortgage to be shortened and now we are looking at September 2020 to be mortgage free.

    Grand I thought. We will continue to pay as we are until 2020, but now I am considering paying off the mortgage completely as there seems to be some good savings to be made. The interest for the remaining 3 and a half years for a start, although I'm sure that won't be a huge amount. But then I thought about the life assurance we have on the policy. It's the most basic of cover I think with nothing returned at the end of it. It's costing approx €33 a month which would add up to the guts of €1500 in savings over the next 3 and a half years if I were to pay off the mortgage.

    We are on a tracker, currently 1.4% but any money we have in savings is earning a lot less than that. I currently have around €53000 in savings so would use a portion of this to pay off the mortgage. I would continue to save the monthly ex mortgage repayment to build up our nest egg again(just the two of us). We have no other loans and have only four months ago paid cash for a 2012 Passat so touch wood, are covered for a car for the next threee to four years.

    So it seems to make sense to me to pay it off as a way of ultimately saving money - a four figure sum. I'm confident that the money I spend on paying it off, I will be able to save again in two to three years.

    I would love some opinions from the more knowledgable on here.
     
    Last edited: Jan 9, 2017
  2. Sarenco

    Sarenco Frequent Poster

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    adox likes this.
  3. adox

    adox Frequent Poster

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    Just a quick update. Decided to pay the balance off. Transferred the money on Thursday evening to the bank so just waiting on the paperwork etc before officially being mortgage free.
     
  4. Firefly

    Firefly Frequent Poster

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    Congrats! I'd be booking a holiday now!
     
    adox likes this.