Quinn Freeway or Accelerated Mortgage Payments?

[maxwl]

Hi

I am about 5 years into a 25 year mortgage. I currently owe approx. €120,000 on the mortgage. I have no other loans or monies owing.

After finishing SSIA I have approx €40,000 including other savings and I would like to plan to have my mortgage paid off in another 5 years.

Would it be best to lodge this money now against the mortgage and also apply accelerated payments to the mortgage over the next 5 years?

Or would I be better off investing the €40,000 in something like Quinn Freeway and make regular payments to this fund instead of accelerated mortgage payments? Obviously Dirt payments will apply to this fund.

Thanks in advance for any help.

Max

 

[GeneralZod]

Re: Quinn Freeway or Accelerated Mortgage Payments??

If the funds perform better than the interest rate you're paying on your mortgage then that will turn out to be the best strategy. There's no guarantee of that happening and you could be above and below water along the way. If you repay the mortgage the gains will be certain and steady but you'll lose the potential extra gains from the funds if they do well. You will have extra peace of mind as the mortgage is paid off.

Given the same choice as you I repaid my mortgage early and now have all the money I would have spent on repayments. For the next fifteen years I'll invest it in the stock market. If it doesn't work out my mortgage will still be repaid. It comes down to your attitude and capacity to take risk.