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  • FIRST POST
    • TP78
    • By TP78 14th Mar 17, 11:04 AM
    • 3Posts
    • 1Thanks
    TP78
    Which mortgage to pay off?
    • #1
    • 14th Mar 17, 11:04 AM
    Which mortgage to pay off? 14th Mar 17 at 11:04 AM
    Hello

    I don't know how to calculate which of my 2 mortgage products I should overpay.

    Mortgage 1 has 27 years outstanding at 1.74%.
    Mortgage 2 has 18 years outstanding at 2.14%.

    Does the amount outstanding on each mortgage matter? If yes, mortgage 1 is circa 3 times larger than mortgage 2.

    Any help please?

    Thanks
Page 1
    • juststuff123
    • By juststuff123 14th Mar 17, 3:35 PM
    • 189 Posts
    • 522 Thanks
    juststuff123
    • #2
    • 14th Mar 17, 3:35 PM
    • #2
    • 14th Mar 17, 3:35 PM
    Hi There TP


    The general rule of thumb is to pay the debt with the highest interest first.
    NEW GOAL Mortgage Balance 0k & 40k Savings by Feb 2019
    MORTGAGE: 41001 / 0
    SAVINGS: 52589 / 40000
    CREDIT CARD: 4677 / 0

    COMPLETE - MFW & DFW - Goal - Debt Neutral COMPLETE
    • rasputin_thorpedo
    • By rasputin_thorpedo 14th Mar 17, 8:39 PM
    • 388 Posts
    • 2,539 Thanks
    rasputin_thorpedo
    • #3
    • 14th Mar 17, 8:39 PM
    • #3
    • 14th Mar 17, 8:39 PM
    Hi TP

    JS123 is correct on a purely financial basis

    However, I am big on promoting mental health and mental progress. Is having two mortgages giving you a problem mentally? Would you prefer just one payment each month?

    In that case I would suggest killing off the smaller mortgage first and then focussing your efforts on the one with the higher interest rate.

    Both your rates are low, my friend, and to be fair the 0.4% difference - well, depending on the value of said mortgages, that might be peanuts.

    So take a balanced look. And choose whatever makes sense for you with that balance.

    Good luck,

    Man vs Mortgage
    May15 Mortgage - 185k | Dec16 - 157k | Dec17 - 135k | Dec18 - 113k | Dec19 - 90k | Dec20 - 66k | Dec21 - 40k | Dec22 - 12k | May23 - 0 Mortgage Free at 40 in May23!
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