Mortgage vs savings calculator

Turnbacktime

I am in a position to clear my mortgage from savings and still have a big enough emergency fund. But it is a fixed rate mortgage with repayment fee. There are a number of repayment calculators out there, but none seem to allow me to factor in the repayment meant fee when calculating the savings return I would need to achieve to make it worth not paying the mortgage off.

Some mortgage swap calculators come close, but give mortgage rate to achieve to make refinancing worthwhile not savings rate needed to match.

Any suggestions?

pgalland

The answer to your question depends on so many factor. Here are a few:
- Your age
- Your mortgage rate
- You net value of Real estate as a % of your networth
- Savings/investments+Pension value as a % of your networth
- Whether you have an emergency fund already set-up
- Age you wish to retire at etc...

You situation might be calling for a different decision. In my case, 75% of my networth is tied up in real estate... so I have no intention to overpay my mortgage, I want to diversify and hence any moneys I manage to save on top of what I put aside in my pension pot, are being invested in stocks/bonds for my retirement.
If my mortgage LTV was 20% I would probably have a clearer incentive to pay my mortgage off.

getmore4less

if the intention is to pay off the mortgage in full or keep the savings then

You only calculate up to the time you become penalty free

You also have to factor in that once mortgage free you suddenly have extra every month to put into savings.

you also have to factor in that some overpayments can be made penalty free.

What are your numbers and I can work something out

a very rough guide is savings + penalty/years > mortgage