Should I pay off my Mortgage

m8 · 13-02-2020 3:11pm #1

Hi
I have a mortgage with about 4 years left and was wondering should I pay it off.

It's about €600 a month and I have enough to cover it and also some savings for a rainy day fund. Not getting anything like interest from the bank and paying about 3.9% ?

It's only about 24k now so what would you advise?

TheW1zard · 13-02-2020 3:12pm

YES

m8 · 13-02-2020 4:16pm

Thanks

SureYWouldntYa · 13-02-2020 4:19pm

If the cost of the interest is greater than what you’re seeking in return from the investment then yes power away with finishing the mortgage

Since the lump is in a savings account i assume its earning little to nothing, however if you were to move it over to riskier equities like shares where a higher return is possible then you could do that either, but returns are not guaranteed obviously whereas the money saved on interest from paying a mortgage is

13-02-2020 4:22pm

You'll save about €2200 in interest if you pay it off now.
If you moved to a 2.5% rate product you'd save about half of that without paying it off early.

It's not huge money over 4 years, tenner/week savings ish by paying it off now.

Move to a lower rate and you save about €5/week and still maintain your lump sum as is.

hammerdub · 13-02-2020 6:10pm

Pay it off and put money you were paying into mortgage into a pension if you can afford it.

m8 · 13-02-2020 7:34pm

Thanks all, I think I will pay it off and save the money I was going to pay.

TheW1zard · 13-02-2020 9:19pm

Mortgage free happy days!

marko99 · 13-02-2020 9:42pm

Definitely! And if you're currently in any sort of pension scheme, look at either increasing contributions or making AVCs to end up with the same net take home pay if you're happy living on that now (will obvs depend on your marginal tax rate).

Should I pay off my Mortgage

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