# Pay off mortgage or save for kids education?



## L&A (15 Feb 2010)

Just wondering would it make more sense to overpay our mortgage and thus reduce the amt of interest we pay or start a savings account for the kids education (university level). Would it be better to pay into the mortgage now and then re-mortgage to pay for kids education if need be when the time came?
Just thinking the interest we pay on repayments would be more than we could get on a savings a/c?

The children are 5 and 2.5 and there will hopefully be another at some stage.
Mortgage is €257,000 outstanding over 20 years approx on tracker mortgage at 0.75% above ECB.
We have a small Rabo savings ac also which we hope to add to separately.
No plans to move/upgrade house.
No other loans.
Earn €84,000 combined plus extra possible.

Thanks


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## niceoneted (15 Feb 2010)

If you were to fill out the money makeover template it might give other users more to go on. as in how much do you currently save, what are spending habits like etc. 
Could you possible split it and save half and pay off half.


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## L&A (15 Feb 2010)

I provided info from the template I thought was relevant. We want to change our current spending habits!
Up to now we haven't been saving as have had to clear loans etc.


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## chlipps (15 Feb 2010)

Have you savings already?.. If not then you should build up a rainy day fund before paying off the mortgage as your mortgage interest rate is very low


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## L&A (17 Feb 2010)

No we don't really have any savings at present.
I thought that since the mortgage is quite big we'd be better off paying it off as would pay more interest this way than we'd earn?
Maybe this is not the case anymore?


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