Pay off mortgage of 50k now ?

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groupthought

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I have €50,000 remaining to pay on my home mortgage. Payment is almost €1,000 per month. Possibly in a few months I may be in a position to spend all of my savings and pay this off. Are there any advantages to this?

Thank you
 
Yes there is, you won't pay any more interest. However if this is all your savings then I don't think I would use them all, you should at least keep some for emergencies/unexpected things.
 
Thank you Monbretia. How do I calculate what figure that interest is please? I agree with you re savings. I have about €38,000 in savings. How much of that should I keep in your opinion?
 
Quick figures suggest you have 6 years left on an average of 3.8% on half of 50k = 25k is about 900 a year x 6 =~ 5k interest over the remaining term. What's your current monthly saving ? Why not overpay by that amount each month and just keep the 38k for now. Make sure if you do to tell the bank to take the excess off the current amount outstanding.

Note - updating title to reflect the contents a bit clearer
 
So about 900 by 5 = 4.5k interest is waht you'll pay over the remaining term. If you're circumstances are good jobwise and you are confident you can restrain your self from spending the 1k and saving it then pay off the mortgage asap as you will get a return of 3.8 on your money rather than circa 1% in current net saving rates.
 
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