Dagny Juel
Registered User
- Messages
- 21
I have been crunching some numbers lately and have started to question whether it actually makes sense to overpay my mortgage.
An example scenario is as follows:
Overpaying mortgage by €200/month for 22 years would save me roughly €21k (based on online overpayment calculator, 3.3% interest with AIB).
However, paying into my pension €400/month would cost me €204/month. The tax saving over 22 years is almost €52k! And of course I would hope that the pension money being invested would grow as well.
Am I missing something?
An example scenario is as follows:
Overpaying mortgage by €200/month for 22 years would save me roughly €21k (based on online overpayment calculator, 3.3% interest with AIB).
However, paying into my pension €400/month would cost me €204/month. The tax saving over 22 years is almost €52k! And of course I would hope that the pension money being invested would grow as well.
Am I missing something?