Caoimhin
|
Whichever will make you the most money. If you can invest at a net higher rate of interest (bearing in mind interest is taxable) compared to the interest on the mortgage then investment would be the better of the two options. |
|
standard_guy
|
Kev is right about considering taxes in the calculation.
The answer depends on how risk averse you are. If you pay down the mortgage you know exactly how much mortgage interest you are avoiding. If instead you invest it you may make more from the investment than you'd save in mortgage interest or you may not. Then the investment you enter has a rate of return based on how much risk you are willing to take on. If you are too risk-averse with the investment then you won't make as much as you'd save by paying down the mortgage. Buying something with it is the quick joke answer but if there's something you really want more than making an investmest and you aren't strapped to pay off your mortgage and you already have some money invested somewhere then buy something you enjoy - ultimately money is only good for what you can get with it. |
|
ed
 |
Consider the interest on the morgtage opposed to the interest on an investment. Which will realize the most savings or income?
You can also consider any tax deduction on morgtage interest if it applies. Here in US, a tax deduction may save 15% or more on the amount of interest. Depending on income.
Consider all three.
If an investment is a plus or interest is a minus, you have your answer.
You may want to keep a portion in savings either way.
Replacing the morgtage payments into savings is not always easy when you can make the choice, unless you have strong discipline.
Also consider how long you have left on the morgtage,
If it is old, bear in mind that you have already paid most of the interest in the early years of the loan. The last half of the morgtage is bearing very little interest charges.
You need to look at your amortization table on the remaining balance and the annual interest yet to be paid.
You lender can furnish this to you. |
|
¸.•*´`*♥Kates ♥ Game11 ¸.•*´`*♥
 |
Have a look at moneysavingexpert.com....you will find loads of good advice on there. |
|
Big Bad Boris Mayor of London
|
Better to keep it for a rainy day |
|
fiddler
|
Check the investment interest against mortgage payments.You
may be able to cover it with interest.Plus a bit in your pocket. |
|
Sarah-P
|
Depends how much the mortgage is... If it's a high one (100K plus) then I wouldn't bother. You 'may' be better off putting it in a very high interest savings account. |
|
zorro2209
 |
Its a simple answer, do you think that you can earn more money on the Stock Exchange than the interest rate on your mortgage? If you go for a blue chip company in the FTSE 100 (Tesco, BP etc) rather than a small company which might rise and fall, then you probably can, so go for it! |
|
Phichayut P
|
You'd better pay for this one :: It's only a little to invest but it's a huge to accept
More information at : http://pophee.com |
|
Ashleigh M
|
put it in your mortgage.
if you invest it you could lose it.
as long as you have insurance you'll always have the house. |
|
mavericam
 |
I would love to be mortgage free. Have the freedom to enjoy what I earn. I have just had to remortgage as I'm in the shite lol. Wish I could be free from Monthly debt. To answer your question is hard as £10000 in the great scheme of things is not a lot of money. but if you only have like £20000 left to pay then its worth paying of half. good luck wish I had £10000 to have that dilemma with lol |
|
Duffer
|
If you can earn more interest by investing than you are paying on the mortgage, I suggest you invest to pay the mortgage interest, thereby saving you money. |
|
El Niño formerly known as paul s
|
I dont know the details of your mortgage but personally I would invest the cash |
|
Dellboy from UK
|
Property will go up in value. Cash will fall in value, especially as we seem to heading into a deep recession. Pay £10,000 off your mortgage and keep your monthly mortgage payments at the current level. You will knock years off the length of your mortgage - and if you sell you will keep much more of the proceeds.
Your property is your best investment.
I scraped together every bit of cash I could about ten years ago and paid off my mortgage. Without a mortgage hanging round my neck, I have so much spare cash every month I don't know what to do with it all - so I just keep buying ISAs and premium bonds. |
|
B0uncingMoonman@aol.com
|
I`d pay some off your mortgage myself - but it depends on what sort of a person you are. I always strived to get myself free of debt, no matter what. The sooner I was debt-free, the better I felt.
But at the end of the day, it`s up to you. |
|
Tony Ash
|
buy drugs |
|
| |
|
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
