Mortgage Term | Rate | Monthly Repayment | Total Repayments | Capital Repayments | Interest Repayments |
---|---|---|---|---|---|
30 Years | 3.7% Fixed 5 Years | €1,062.40 | €63,744.23 | €19,184.65 | €44,559.58 |
35 Years | 3.7% Fixed 5 Years | €1,150.71 | €69,042.45 | €24,994.82 | €44,047.63 |
Mortgage Term | Rate | Monthly Repayment | Total Repayments | Capital Repayments | Interest Repayments |
---|---|---|---|---|---|
30 Years | 3.7% Fixed 5 Years | €2,124.81 | €127,488.46 | €38,369.29 | €89,119.16 |
35 Years | 3.7% Fixed 5 Years | €1,150.71 | €138,084.90 | €49,989.63 | €88,095.26 |
Yes.If I took out a €250,000 I'd pay €500 extra interest in 5 years if I go 35 instead of 30. Is this correct? Seems too good tbh
Well, you're only repaying an extra 88 per month, so the impact on balance difference is not big in first couple of years.I'm surprised the difference is so little.
I suppose my idea would be to save up for the first few years when it's fixed then pay of a big chunk
Plus extra and higher mortgage protection life insurance premiums.Yes.
But if you repay to schedule for the full term, at 3.7% a 35 year term will cost an extra 32k.
1) Why would you save it up? Just pay it off when you have the money. There could be an early repayment charge, but there might not be and if there were, it would be small and much less than the interest saved by paying off your mortgage.
I have an exemption so it's not relevant in this case.Plus extra and higher mortgage protection life insurance premiums.
Presumably not great?6. How's your health?
I have an exemption [from the need to have mortgage protection life insurance] so it's not relevant in this case.
1. What age are you? 30
2. What age will you be when the mortgage is fully paid back? 65 (if I let it go to term)
3. Is your house purchase your forever home? Yes
4. Have you got job security? Yes, though will be looking to quit and do my own thing in the next year or two.
5. Are you married? No
6. How's your health? Very Good
I don't think it's madness if it's most likely going to be paid off sooner anyway. The downside in terms of higher mortgage protection life insurance premiums doesn't apply in this case. The only con that I can think of is that the borrower "forgets" the original intention to pay it off early and it runs the full 35 years and incurs the full 35 year interest costs. Which is, I guess, the point that you're making? But if they're committed to accelerating repayment then I see no real issue with taking the longest available term.Go with 30 years. 35 years is madness.
This might not be very efficient. If there is no break fee you should pay off amounts right away rather than letting it accumulate on deposit and paying if off in instalments.I'll overpay the max allowed 10% during the fixed term and continue saving.
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