mortgages home loans

Archive for the ‘amortization’ Category

My husband (73) and I (67) have a condo – with a mortgage of 100 000 francs, for which we are currently paying 3.25% interest rate. Two years ago we wanted to pay off the mortgage, but the consultant advised us from one of them because no bank would give us more money later, should we ever need some. Now the mortgage is due again. What do you advise us?

Your current mortgage rate is 3.25%, savings rates are below one percent: After repayment of the mortgage you would be, therefore, the bottom line of 200 francs per month more disposable income. But you must remember that even if you renew your mortgage for two years, increases your disposable income per month compared to 150 francs – because of lower mortgage rates. Because depending on the bank you get a fixed-rate mortgage for two years starting from 1.5 percent: this would damage your budget with more than 50 francs.

Is added that the rental value of your home after the repayment of the mortgage by proposing again fully taxable income. Since I made your records is not clear how much income you pay taxes, I can not tell you how much this affects your tax burden. I suspect that the mortgage interest saved not too much was left.

My conclusion: For you, it is hardly worthwhile to pay off the mortgage. Above all, remember you must: Refrain from, 000 francs are left with $ 100 in your account and you can do what you want. I assume that you are comfortable with the pension and pension and pay the mortgage easily. Their savings would be freely available money. Give it a try, to enjoy with her husband’s life.

But even if you pay off the mortgage now, you should need not to worry. The fact that you “get more money from any bank,” is slightly exaggerated. “My” Kantonalbank (Basler) issues such as mortgages “in every age” after the “overall situation” of the customer. The amortization of the mortgage could indeed “make sense”, but sometimes an increase in the mortgage would be advisable (for example, tax point of view) and make “no greater risk to the bank” dar.