I have $80,000, should I pay off more of my mortgage or just keep it in the bank?

[Anonymous]

What do you think I should do? With interest rates rising I'm thinking of paying off more of my mortgage to reduce weekly payments. What would you do in this situation?

[TommyMountainFigure]

It depends. Which type of mortgage do you have? Do you have life assurance attached to it? Does it stay the same every month or fluctuate? Meaning is it an endowment or repayment mortgage?

Go and speak to the financial advisor at the bank to get some ideas. Just paying the whole thing can sometimes have detrimental effects, such as punishment for early payment. I kid you not.

[Asker]

I do have some sort of insurance attached to it. My Mortgage rate fluctuate, and changes alll the time. And wow I don't want to pay for early payment

[TommyMountainFigure]

Different mortgages have different things that apply. DEFINITELY get advice from your bank on this.

[ArrowheadSW]

How much money do you owe on your mortgage? If it were me, I would probably put about $40,000 of it towards paying off the mortgage.

[saffoler]

Mortgage. Intrest on loans is greater than savings.

[In_Trance]

What are the interest rates?

[Asker]

Interest rates for mortgage here is 4.25% and going up. Savings account is 2.2%

[In_Trance]

So it's costing you more to carry the mortgage.

[Asker]

Yes but having it in the savings account means I can use it whenever

[In_Trance]

Right... but you're losing 2% of that