Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

paying off mortage

Options
  • 12-01-2012 12:47am
    #1
    tomrob
    Registered Users Posts: 43 ✭


    I owe 20000 Euro on my mortage with over 7 years left, on it to pay, payments at the moment 285 euro. I could pay it off with no penalties. should i do that or invest my 20000 euro:confused:


Comments

  • Options
    #2
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    How much interest would you earn on 20k over 7 years if invested? If that would make more than the interest you'd pay on the mortgage then it could make sense to invest.


  • Options
    #3
    tomrob
    Registered Users Posts: 43 ✭tomrob


    with 30% dirt tax would struggle to make enough interest in seven years to balance it out and with not knowing what happening with euro probaly better pay mortage off


  • Options
    #4
    Hootanany
    Registered Users Posts: 5,477 ✭✭✭Hootanany


    Clear your mortgage you will be more happy


  • Options
    #5
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Some government bonds, saving Certs and plans are dirt free.

    But yeah, if I had it I'd pay off the mortgage.


  • Options
    #6
    Tayla
    Registered Users Posts: 2,158 ✭✭✭Tayla


    If it was me i'd pay off the mortgage.....but that's because I don't see the euro lasting and I would be worried about servicing a euro mortgage with a new currency.

    If I thought the euro was going to last I'd probably still pay off the mortgage, must be a great relief to not have a mortgage over your head, although you don't owe very much anyway so you may not have worries about the mortgage to begin with.

    Investing it could of course be a good option depending on interest rates but I would be worried about the real value of the investment in 7 years depending on inflation.


  • Advertisement
  • Options
    #7
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Deposit rates are dropping and with increased DIRT may be better to pay off your mortgage. If on a nice low tracker you may get a better rate on deposit but how long this will last is guess work. Clearing the mortgage would give you security and peace of mind if anything bad happens to the euro.


  • Options
    #8
    GavMan
    Registered Users Posts: 1,914 ✭✭✭GavMan


    The answer is simples, pay off the mortgage now and (presuming you've always been comfortable making the payments) set up a direct debit into a savings account or credit union for the 285 you've been paying all this time.

    285 * 12 * 7 = approx €24K


  • Options
    #9
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    GavMan wrote: »
    The answer is simples, pay off the mortgage now and (presuming you've always been comfortable making the payments) set up a direct debit into a savings account or credit union for the 285 you've been paying all this time.

    285 * 12 * 7 = approx €24K

    I agree with paying off the mortgage but its not just that simple and based on your theory of simple maths not really what I would go on.

    If he could make more of the €20k on a deposit rate over the 7 years he may be better off having it on desposit where it could make more then €24k he would pay off mortgage.

    All this is based on rates staying same and if increased will bring more problems. I would agree with your conclusion to pay the mortgage but not how you got there.


  • Options
    #10
    tomrob
    Registered Users Posts: 43 ✭tomrob


    Thanks for all the replies ,if interest rates stay the same iwould end up paying back approx 24500 euro think will pay it off everybody thinks i should here.


Advertisement