# paying off mortgage early



## sonya2 (12 Jan 2017)

Next month we finish paying off the mortgage of 2,000/month on our home (we live outside ireland).   Also, we are on year 10 of a 15 year mortgage on our holiday home in Ireland, we owe approx 60,000 euro on that. In 4 or 5 years we will be returning to Dublin and plan to buy a property there  (we are retiring and that will be our permanent home). Other than the holiday home mortgage, we have no other debt. We have 30,000 euros in savings. Our holiday home mortage has been fixed for 10 years, we can review that for the remaining 5 years. We  are paying rent in Dublin for two children of just over 1200/month and have another child who will join them next year. We had thought of using the 2,000 extra/month we now have to pay off the holiday home mortgage early (maybe using savings too). However, with rental accomodation in Dublin so expensive, would a better option be to use savings and our extra 2000 a month to buy our retirement home now and move our children in there for the duration of their studies, saving us the on the rent?


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## Brendan Burgess (12 Jan 2017)

sonya2 said:


> We are paying rent in Dublin for two children of just over 1200/month and have another child who will join them next year.



Do you know where you want to live when you retire to Dublin?  Will it be convenient for the children attending college? Will next year's graduate attend the same college? 

Will you be able to buy a house in Dublin? You have €30k in savings and will have €2k a month to pay towards it.  I think you will find it very difficult to get a mortgage if you are close to retirement. 

So you would have to sell your current home, and then rent where you are now living for the next 5 years. 

Or else sell the holiday home and buy the home in Ireland for cash. 

I think you are better off leaving things as they are.  The risk you run is that  house prices in Dublin shoot up over the next 5 years, while the value of your current home falls.  

Brendan


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## mister32 (30 Jan 2017)

You could sell your house and your holiday home.

Then be ready to pounce and make offers on new Irish residence.

If that happens sooner then the kids can live there.  

You know what kids are like don't buy anything too pristine.

You can rent something cheap where you are now.

Then serious decorating when you get back to Ireland.


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