You have a lot to think about.
But no need to think about this until November next when the the State Savings mature.
Brendan
Yes indeed, thanks for your input it was really helpful.
You have a lot to think about.
But no need to think about this until November next when the the State Savings mature.
Brendan
Think of your mortgage as an insurance policy. You can hang on to the 160k and only have to pay 1% interest
Think of your mortgage as an insurance policy. You can hang on to the 160k
That is a reasonable way of looking at. However, it's a repayment mortgage, so he is obliged to repay chunks of capital every month. With 17 years, to go, he will be just saving his money to repay the capital a few years later and paying interest in the meantime.
He will still have plenty of cash after he clears his mortgage, so clearing his mortgage is correct in this case.
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I keep about as that much in cash. There is an opportunity cost of course.If he had a mortgage of €160k and €30k cash, then it would be worth considering paying the 1% interest as an insurance premium to keep access to the cash.
Maybe set up a direct debit to a regular savings account. Rates are obviously very low at the moment but at least the process will be automated.An extra 800 or so a month. I'd like to automate it that 400 of that went somewhere useful so we don't just spend it.
Things your missing:That's a great calculator, I was just looking 10 year state savings pays 10% after 10 years.
If I put 160k in I'd make 16k
If I pay 160k off mortgage adding 10 years interest it's 12.7k.
I'm trying to work out what I'm missing that's obvious as interest on mortgage is higher than savings 1.1% v 0.96%.?
Yes that's a good idea, thanks for that link very handy.Maybe set up a direct debit to a regular savings account. Rates are obviously very low at the moment but at least the process will be automated.
Ok thanks that clears things up.Things your missing:
1. Your mortgage balance goes down each month as you pay the capital off, so you are paying interest on 160k at the start but on a reducing amount as time passes.
2. As well as saving the 12.7k interest on the mortgage, you will also have the monthly interest payment that you are no longer paying, to invest and make a return on.
We have only recently become aware of DCA and also the tax credits.Paying off the house loan can be argued both ways.
Your childs disability would seem to require "above the care of a similar aged child" and would qualify for Domicilliary Allowance of 309 euro per month as mentioned in previous post and disability allowance of around 208euro automatically at age 16.
The fact that you have a child with a disability allows you to claim a tax credit not a tax allowance of 3300 per annum allowing you to pay 275 month extra off the house loan should you wish to do so. This tax credit is paid up to 18 and can be extended if your child is in some form of training/further education.
Thank you for this information. I've sent over forms for DCA fingers crossed, from reading online it's very hard to get DCA even with a diagnosis of a disability it can be a battle.If your child qualifies for Dca one of you could claim Carers Benifit of 220 per week for a period of two years.
To claim this payment whoever claims could not work more than 18.5 hrs per week and not receive salary of greater than 335 per week. The spouse's salary is not counted. After the 2 year period you would be legally entitled to return to your previous hrs of work.
Best of luck with your application.Thank you for this information. I've sent over forms for DCA fingers crossed, from reading online it's very hard to get DCA even with a diagnosis of a disability it can be a battle.
We got the doctor to sign off on them forms for the incapacitated tax credit and submitted them to revenue. So we should have an extra 275 a month going forward if revenue approve it. That's great thanksPaying off the house loan can be argued both ways.
Your childs disability would seem to require "above the care of a similar aged child" and would qualify for Domicilliary Allowance of 309 euro per month as mentioned in previous post and disability allowance of around 208euro automatically at age 16.
The fact that you have a child with a disability allows you to claim a tax credit not a tax allowance of 3300 per annum allowing you to pay 275 month extra off the house loan should you wish to do so. This tax credit is paid up to 18 and can be extended if your child is in some form of training/further education.
Thanks, it was an ordeal to fill it out, not a very nice to thing to have to do listing all the behavioural problems and day to day routines.Best of luck with your application.
Re the 335 euro figure might have changed with the budget but if it has it will be a higher figure