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Pay off mortgage

  • 06-10-2012 11:36am
    #1
    me4many
    Registered Users Posts: 276 ✭✭


    I have a mortgage remaining of approx. €9500. Remaining time about 27 months.
    Repayment is €420 p/m. which includes €40 mortgage protection .

    Now retired without about €75k savings and a small pension. (in my late 50's)

    Should I pay off this mortgage OR what is the best thing to do.
    I dont have any other loans.

    Thanks.


Comments

  • #2
    NIMAN
    Registered Users, Registered Users 2 Posts: 34,041 ✭✭✭✭NIMAN


    Advice is always to see if you get more return by investing your money than using ti to pay off mortgage.

    So if you were to take the €9500 and invested it for the 27 months, would it be worthwhile? I am guessing that the €40 per month for mortgage protection would make it better to pay off your mortgage now and save on that. In fact, is it even needed any more?


  • #3
    Islander13
    Registered Users, Registered Users 2 Posts: 1,218 ✭✭✭Islander13


    me4many wrote: »
    I have a mortgage remaining of approx. €9500. Remaining time about 27 months.
    Repayment is €420 p/m. which includes €40 mortgage protection .

    Now retired without about €75k savings and a small pension. (in my late 50's)

    Should I pay off this mortgage OR what is the best thing to do.
    I dont have any other loans.

    Thanks.

    I think this is straightforward. 27x40 = c 900. Which equates to approx 5% per annum premium on your mortgage interest rate. No secure investment would pay that return.

    Assuming no early redemption cost (v unlikely unless you've a fixed rate) then repay your mortgage.

    Congrats for getting it cleared by the way. Must be a landmark day


  • #4
    maddragon
    Registered Users Posts: 590 ✭✭✭maddragon


    In my opinion you should pay it off. You'll still have €65.5k in savings and you'll save €1840 in interest based on your figures €420x27=€11340 - €9500= €1840. Also check that you were not wrongly sold payment protection, http://www.irishtimes.com/blogs/pricewatch/2012/07/09/payment-protection-insurance-can-you-get-a-refund/

    Happy days


  • #5
    NIMAN
    Registered Users, Registered Users 2 Posts: 34,041 ✭✭✭✭NIMAN


    Yeah, congrats on (potentially) being mortgage clear. I look forward to that day!


  • #6
    me4many
    Registered Users Posts: 276 ✭✭me4many


    Thanks for reply's folks.
    Paying it off was on my mind but its nice to get other opinions.
    Yes, I'm looking forward to holding onto that €420 p/m.
    ( I hope you all get there soon)



    NOW.... any ideas on how to get the best out of the remaining €65k.


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  • #7
    NIMAN
    Registered Users, Registered Users 2 Posts: 34,041 ✭✭✭✭NIMAN


    If could do without a lump of it for a few years, maybe State Savings? No DIRT on them.

    Savings rates are obviously pretty poor at present, with the record low interest rates. Check out this thread for the best current savings rates:
    http://www.askaboutmoney.com/showthread.php?t=101813

    or

    http://www.bonkers.ie/compare-savings-accounts/

    or

    http://www.nca.ie/nca/saving-investing


  • #8
    Oral Surgeon
    Registered Users, Registered Users 2 Posts: 3,240 ✭✭✭Oral Surgeon


    me4many wrote: »
    Thanks for reply's folks.
    Paying it off was on my mind but its nice to get other opinions.
    Yes, I'm looking forward to holding onto that €420 p/m.
    ( I hope you all get there soon)



    NOW.... any ideas on how to get the best out of the remaining €65k.

    Go mad;
    http://www.carzone.ie/search/Aston-Martin/DB9/Sports-C/30613469218968110/advert?channel=CARS


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