Mortgage Repayments

Is it possible to get a breakdown of what I will owe on my mortgage as the years go down as I will have a good amount saved soon and would like to see in say 5 years what I will owe to see if I could pay the remainder off thanks.

D3PO

Deleted User wrote: »

Is it possible to get a breakdown of what I will owe on my mortgage as the years go down as I will have a good amount saved soon and would like to see in say 5 years what I will owe to see if I could pay the remainder off thanks.

Impossible unless you know somebody that can read the future and predict exactly what rates will change when.

If you have money available to overpay or pay a lump sum assuming paying off your mortgage is the best use of the money i.e mortgage rate is higher than the money will yield in savings why would you wait 5 years to pay it off the mortgage ?

Paying it off now would be more beneficial financially. Lots of assumptions being made on my behalf but the core principle stands.

L1011

This may have been provided by the bank at the time you started the mortgage and they should be able to re-provide, but as D3PO says, any such breakdown based on interest rates staying the same.

D3PO

D3PO wrote: »

Impossible unless you know somebody that can read the future and predict exactly what rates will change when.

If you have money available to overpay or pay a lump sum assuming paying off your mortgage is the best use of the money i.e mortgage rate is higher than the money will yield in savings why would you wait 5 years to pay it off the mortgage ?

Paying it off now would be more beneficial financially. Lots of assumptions being made on my behalf but the core principle stands.

Thanks was not sure if I payed now or waited with the money in a savings account which would be the better option.

D3PO

Deleted User wrote: »

Thanks was not sure if I payed now or waited with the money in a savings account which would be the better option.

assuming your not on a fixed term (which may have penalties for overpaying) then its a simple decision.

are you earning more in interest - DIRT than your mortgage rate ?

If the answer is no then you should overpay now.

Again broad assumption that you have no other debts that would be better services first e.g credit card, car loan etc

Uriel.

Deleted User wrote: »

Thanks was not sure if I payed now or waited with the money in a savings account which would be the better option.

As others have said, it depends on the rate of your mortgage etc...
Unless you are on tracker mortgage it's probably likely that interest received on savings (less DIRT) will be less than the interest saved on making a lump sum payment off your mortgage.

There are other considerations - long-term and/or higher risk savings/investments may produce a better yield if you were so inclined.

Also the flexibility of having access to a lump some tucked away in the event of an emergency unforeseen issues arising.

There are a number of factors to consider.

D3PO

D3PO wrote: »

assuming your not on a fixed term (which may have penalties for overpaying) then its a simple decision.

are you earning more in interest - DIRT than your mortgage rate ?

If the answer is no then you should overpay now.

Again broad assumption that you have no other debts that would be better services first e.g credit card, car loan etc

On a tracker mortgage. Not earning more in Interest though not much of a gap. I dont have any other outstanding debts at the moment.

Cheers for the info.

D3PO

Deleted User wrote: »

On a tracker mortgage. Not earning more in Interest though not much of a gap. I dont have any other outstanding debts at the moment.

Cheers for the info.

if your on a tracker id be surprised if you cant find a 5 year savings option returning a better yield than paying a lump off the mortgage.

whats your tracker rate ?

D3PO

D3PO wrote: »

if your on a tracker id be surprised if you cant find a 5 year savings option returning a better yield than paying a lump off the mortgage.

whats your tracker rate ?

1.25 above ecb rate

D3PO

Deleted User wrote: »

1.25 above ecb rate

Im being lazy but you can defo do better saving the money than paying it off the mortgage as it stands.

Sure a 5 year savings cert with the NTMA will yield you 11% over 5 years or 2.11% AER (Annual Equivelency Rate) and its DIRT exempt.

So that's earning 2.11% whilst your mortgage is 1.75%. Not a huge difference and its a long term commitment that may end up at a lower yield as the ECB rate rises (whenever that may be) but your money isn't locked in and can be withdrawn at 7 days notice albeit with penalties so if the ECB rate starts to go up again you can reassess and change your position and pay it off the mortgage if needs be.



Im sure there are other savings products that might suit better but im too busy to check. Whatever you do do your maths and research and get your money to work for you as best you can.

D3PO

D3PO wrote: »

Im being lazy but you can defo do better saving the money than paying it off the mortgage as it stands.

Sure a 5 year savings cert with the NTMA will yield you 11% over 5 years or 2.11% AER (Annual Equivelency Rate) and its DIRT exempt.

So that's earning 2.11% whilst your mortgage is 1.75%. Not a huge difference and its a long term commitment that may end up at a lower yield as the ECB rate rises (whenever that may be) but your money isn't locked in and can be withdrawn at 7 days notice albeit with penalties so if the ECB rate starts to go up again you can reassess and change your position and pay it off the mortgage if needs be.


Im sure there are other savings products that might suit better but im too busy to check. Whatever you do do your maths and research and get your money to work for you as best you can.

Thanks a million for that will look into things a bit more much appreciated.

beeno67

D3PO wrote: »

a

are you earning more in interest - DIRT than your mortgage rate ?

If the answer is no then you should overpay now.

Again broad assumption that you have no other debts that would be better services first e.g credit card, car loan etc

It also assumes you will have no debt in the near future. Do you plan to buy a car or do home improvements in the future? Will you need a loan to do this? If so you are probably better off not paying off the mortgage.
Also are you getting mortgage interest relief?

D3PO

beeno67 wrote: »

It also assumes you will have no debt in the near future. Do you plan to buy a car or do home improvements in the future? Will you need a loan to do this? If so you are probably better off not paying off the mortgage.
Also are you getting mortgage interest relief?

True of course. Like I said earlier in the thread my answers are making certain assumptions this being one of them.

beeno67

beeno67 wrote: »

It also assumes you will have no debt in the near future. Do you plan to buy a car or do home improvements in the future? Will you need a loan to do this? If so you are probably better off not paying off the mortgage.
Also are you getting mortgage interest relief?

Still getting interest relief think another two years of it to come. Have done up most of the house and no forseeable outlays in the near future.

D3PO

Deleted User wrote: »

Still getting interest relief think another two years of it to come. Have done up most of the house and no forseeable outlays in the near future.

you will get MIR until 2017 so you have 3 1/2 years of MIR left