cavanman72
Registered User
- Messages
- 2
Age : 48, Partners Age: 48 , 3 kids (15, 11, 7)
Annual gross income from employment or profession: 130k
Annual gross income of spouse: €0
Monthly take-home pay : 6k
Rental income: 1600 per month
Type of employment: Private Sector
In general are you (a) spending more than you earn, or (b) saving?
Saving - 300k savings
Rough estimate of value of home: 400k
Amount outstanding on your mortgage: 328k
What interest rate are you paying? 2.25% tracker
Mortgage Expiry: January 2042
Mortgage Repayments: 1623 per month
Other borrowings – car loans/personal loans etc. Mortgage on Investment Property
Rough estimate of value of home: 300k
Amount outstanding on your mortgage: 172k
What interest rate are you paying? 3.6%
Mortgage Expiry: August 2028
Mortgage Repayments: 522 per month (mortgage is on interest only)
Do you pay off your full credit card balance each month? yes
Do you have a pension scheme? Yes.
Mortgage protection : covered for death.
Life insurance: No other income protection
What specific question do you have or what issues are of concern to you?
I have a lot of mortgage debt and I plan to use a large portion my savings to reduce it. I was thinking of clearing the mortgage on the investment property and then using rent received (less tax and expenses) to pay down the mortgage on my home. I am thinking this might be the best approach as the interest rate on my home mortgage is lower. I think I could reduce the term to about 10-11 years with this approach.
However, I was wondering would it be more efficient to pay off a large portion of the home mortgage instead and then pay down the investment mortgage over time? I was thinking this might be better as I would be able to continue to offset the mortgage interest against the rental income.
I am not sure which of these is the best approach or if there are better options. I would appreciate any advice you may have.
Many thanks in advance.
Annual gross income from employment or profession: 130k
Annual gross income of spouse: €0
Monthly take-home pay : 6k
Rental income: 1600 per month
Type of employment: Private Sector
In general are you (a) spending more than you earn, or (b) saving?
Saving - 300k savings
Rough estimate of value of home: 400k
Amount outstanding on your mortgage: 328k
What interest rate are you paying? 2.25% tracker
Mortgage Expiry: January 2042
Mortgage Repayments: 1623 per month
Other borrowings – car loans/personal loans etc. Mortgage on Investment Property
Rough estimate of value of home: 300k
Amount outstanding on your mortgage: 172k
What interest rate are you paying? 3.6%
Mortgage Expiry: August 2028
Mortgage Repayments: 522 per month (mortgage is on interest only)
Do you pay off your full credit card balance each month? yes
Do you have a pension scheme? Yes.
Mortgage protection : covered for death.
Life insurance: No other income protection
What specific question do you have or what issues are of concern to you?
I have a lot of mortgage debt and I plan to use a large portion my savings to reduce it. I was thinking of clearing the mortgage on the investment property and then using rent received (less tax and expenses) to pay down the mortgage on my home. I am thinking this might be the best approach as the interest rate on my home mortgage is lower. I think I could reduce the term to about 10-11 years with this approach.
However, I was wondering would it be more efficient to pay off a large portion of the home mortgage instead and then pay down the investment mortgage over time? I was thinking this might be better as I would be able to continue to offset the mortgage interest against the rental income.
I am not sure which of these is the best approach or if there are better options. I would appreciate any advice you may have.
Many thanks in advance.
