The Mortgage, paying off and how to begin.

Well, it’s getting less, and is making a significant impact on our monthly expenses . so far it saves about 115 Euro a month. Most people will say that’s not all that much.

It’s a nice dinner for two every month for example. Some money you can spend on something else than interest.
It gets more interesting if you save that money and pay your mortgage off some more. Let’s take an example.

For instance you have a 200.000 mortgage. Let’s take 5% interest. I know it’s lower nowadays but a lot of people are still around 5% from before the 2008 crisis.
In the Netherlands it was all the rage to have a mortgage where you only paid the interest and didn’t pay off the debt every month.

This works well if the market keeps going up and when you sell the house is worth more than the original price you paid.
Not so much now , and a lot of people are either waiting it out or some start to pay off. the latter being a very wise decision.

Back to the example , Let’s say you pay 20.000 which saves you about 1000 per year in interest. (not taking into account any tax benefits etc.)
Save that 1000 and pay off again at the end of the year or better monthly (if possible). Saves another 50. And next year you can pay off 1050 , saves 52,50.

Etc etc, well you get the drift. This goes pretty fast without costing any extra money per month except for the initial payment. You simply start. It’s that easy.