NoRegretsCoyote
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Indeed, but that's something different.
Without a full money makeover we can only give advice in isolation.
Indeed, but that's something different.I value having a large rainy day fund.
I understand that, but I didn't ask for advice. Just wanted to double check that my calculations were correct.Indeed, but that's something different.
Without a full money makeover we can only give advice in isolation.
Yes that was my point. Seen too many who think/believe they will repay early but do not. I'm actually one of the replay early types as it happens. But in general I don't advise it because of life experience of seeing what others do.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.
Then in this particular case the 35 year is suitable for you. How much are you stress testing?I think for me the best idea is to take the 35 year mortgage. I'll overpay the max allowed 10% during the fixed term and continue saving. Then after the fixed term, i'll have a good whack saved and can reassess best case wrt interest rates etc.
I max out the pension already so there's no scope for increasing that really. I'm extremely disciplined so the wouldn't be worried about "forgetting" to pay off the mortgage early. I have standing orders to savings (both long term and rainy day) on pay day.
Don't you think it would be far better to get that advice. You omitted entirely in the OP the cost in interest of the longer term. As Redonion pointed out.I understand that, but I didn't ask for advice. Just wanted to double check that my calculations were correct.
I'd pay off a big chunk of the mortgage. Or just continue paying the double interest rate, it's still very comfortable for me.Don't you think it would be far better to get that advice. You omitted entirely in the OP the cost in interest of the longer term. As Redonion pointed out.
What would you do if your fix ends and your interest rate doubles. Very relevant for those early in life with large mortgages. Generally irrelevant to those at the end of their mortgage with little remaining to repay.
Your maths is correct but your table is mixed up, fixed it belowI'm not really looking for general advice about 30 v 35. Just wanted to make sure my maths was correct.
€250,000
€500,000
Mortgage Term Rate Monthly Repayment Total Repayments Capital Repayments Interest Repayments 30 Years35 years3.7% Fixed 5 Years €1,062.40 €63,744.23 €19,184.65 €44,559.58 35 Years30 years3.7% 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 Years35 years3.7% Fixed 5 Years €2,124.81 €127,488.46 €38,369.29 €89,119.16 35 Years30 years3.7% Fixed 5 Years €1,150.71€2,301.41€138,084.90 €49,989.63 €88,095.26
Thanks, copy and paste error!Your maths is correct but your table is mixed up, fixed it below