clearing the mortgage

[beer]

Hi my mortgage balance is €26000 with 3.5 years left ,i am in a position to clear it but would leave me with noting than ,would it be in my best interest to clear the balance or just keep paying for the next 3.5 years ?Any advise please

 

[arbitron]

What is the interest rate on the mortgage? What is your current income, savings, and other debts? How old are you?

 

[Sarenco]

It doesn’t have to be all or nothing.

Maybe throw, say, €10k at the mortgage leaving the term unchanged and keep the balance of your savings on deposit just in case you have a short term need for the cash.

 

[Brendan Burgess]

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[beer]

Hi i am 47 the interest rate is 4.1 and my income is 2000 no other debts no other savings

 

[beer]

Was thinking of putting €10000 off the mortgage

 

[moneymakeover]

Makes sense particularly with 4.1 interest rate

Over 3 years 10k will cost 1200 in interest

 

[beer]

Thanks Moneymaker

 

[BilliamD75]

Clear the mortgage and be done with it, enjoy the extra money, you can always borrow money short term if needed

 

[beer]

Thanks BilliamD75 for your reply

 

[Opus2018]

Hi beer,

Based on the details you gave (26,000) outstanding, 3.5 years left and 4.1 % interest I estimate you pay just under 700 euro a month not including insurance.

So I’d recommend you pay it in full and use the monthly savings to replenish the cash. Think of it this way - in order to get a return on the cash you have you’d need to be getting a return of 8 % per annum when you take DIRT and other taxes into account.

Unless you need the cash for something else, I’d pay it off in full. If you prefer save maybe 3 months net salary (6,000) and pay the balance off the mortgage.

To be honest though I’d pay it off in full given the details you’ve supplied here.

Best,

Opus 2018

 

[Marsha25]

Unless you absolutely need the cash now I'd pay off the mortgage and save as suggested above. That said, we paid ours off earlier this year and still haven't put our monthly amount anywhere meaningful, but we will sort it soon. It's great to get the deeds and have the weight of a mortgage lifted.