Paying off mortgage early

[corkyoldwood]

I have a house valued at €800k and a mortgage with 20 years to run of €400k. I have recently recieved enough money to pay it off, with a little to spare.
Wondering if I should pay the loan down or pay it off completely or indeed invest the money elsewhere.
Have pension (sizeable) and thought money from my monthly mortgage €2.5k could be diverted to pension or investments.
Any suggestions or observations anyone. I am in my early 40's with a family and a reasonable income.

 

[ClubMan]

Karl Jeacle's mortgage calculator allows you to estimate the interest cost savings attributable to reducing or clearing the mortgage before the term is up by comparing the accelerated repayment/redemption strategy with what happens if you just continue with the originally agreed term. You will also save on the mortgage protection life assurance premium payments that you would otherwise have to make if the mortgage continues. For the amounts involved you probably should consider getting professional advice from a good multi-agency intermediary or authorised advisor who can do a proper/comprehensive fact find and financial review and recommend a range of possible savings/investment options suitable for your specific circumstances. Beware of tied agents such as your lender or bank offering to give you "advice" since they will just try to sell you their own products.

 

[mad m]

I'd definitely get rid of the noose around my neck if I came into money to pay off mortage.

 

[irishlinks]

I would agree with MAd M - if I was in your position the mortgage would be paid - assuming that is your only debt.
To find a Risk Free return on your capital that would earn you more interest than the mortgage interest - would be difficult. Paying off the mortgage is a risk free way of saving you 212000 euro in interest payments. It MAY be worth considering paying off just enough so the remaining amount of mortgage qualifies for the max tax interest relief - but that would be the only reason for keeping any of the mortgage as far as I can see.