Should I save hard to pay down a comfortable mortgage?

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Niall-1980

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I bought a 4 bed house last November for €135,000. I had €67,500 in savings and I took out a 10 year mortgage with PTSB last November.

I borrowed €67,500 and got it on a 3.75% 5 year fixed breaking out to variable after the 5 years.

Myself and the wife currently have €17,000 in savings and are expecting our first child in 2 months time. We are expecting that she will not work for a few years and take care of the child.

I take home roughly €2,500 a month currently and we are comfortable.

My question do you think I should save like hell for the next 4 years and use ll my savings to clear the mortgage when it comes out of the 5 year fixed stage.

I am 33 and my wife is 28 and our future plans are to have one more child asap after the first.

Should I save hard for the 4 years or enjoy life and keep paying the mortgage for the remaining 9 even with maybe high variable rates?
 
I think you should live within your means and save any surplus every month.
Enjoy life without spending lots of unnecessary money but dont completely scrimp and save. You are comfortable for the moment but anything can happen in life.

You dont know what the next 5 years will bring. Dont dwell on it too much.
 
Would you do the best to pay it off as quickly as possible or would you just relax and pay it over the 10 years
 
I would relax and pay it off over 10 years. It's a short manageable mortgage which should still allow enough to live well during the expensive early child rearing years. You will still be in the enviable position of being mortgage free in your 40s.
You are clearly a prudent couple and as long as you don't go nuts now with the spending, you have set yourselves up well. Time to relax a bit.
 
Thanks for the reply and the advice Sarah, It is actually me that is the prudent one ha ha. The wife leaves all the financial aspects of things to me and so far i have been basing alot of the decisions on trying to retire early and enjoy the golden years but i do also wonder if im destroying our youth a little too much in the proccess sometimes.
 
You dont know what the next 5 years will bring financially. Kids are shockinlgy expensive and you cant predict too far in advance.

Save if you can, but dont worry too much about it.

In 5 years time, you can decide what to do with your savings, based on your circumstances then.
 
Thanks for the advice sounds like that is the way to go, as you say anything could happen between now and then
 
If it was me I would do exactly as you suggest,pay the mortgage off,take the hit over the next 4 years and hey presto no more Bank,plus you will be saving 5-6k in interest.
 
Thanks for the advice , yeah i was thinking myself the interest saved from the following 5 years and the fact that i would be mortgage free at 37 is appealing. i could also start saving mortgage payments going forward.
 
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