Saturday, November 02, 2013

Mortgage - Pay Off or Not?

I am not in the position where I have enough money saved to pay off my mortgage, but I have been thinking about it. Despite the fact that I am very much looking forward to the day when I can say that I own my home and not the bank, I am rather dreading cashing in my premium bonds. I am really enjoying having so much spare money tucked away just in case I need it. However, as soon as I have saved up the money to pay the mortgage I do plan to put it in the associated savings account that I had. This will offset the mortgage and mean that i will not have to pay any interest, however, it is easy to get the money out again, so I will keep it there for a while so that I can build up some emergency savings before cashing in the loan. Plans may change in the future though, depending on interest rates.

1 comment:

new2chooks said...

I think paying off a mortgage is as much an emotional decision as a financial one. If I suddenly 'discovered' £150,000 would I pay off the mortgage, or put it to work knowing I could pay off the mortgage if I chose to??

Would I even get the chance, he he??