It’s a new year which means I can pay off another 15% on the base sum of my mortgage. And that will save me around 100 Euro in interest payments each month. For the duration of the mortgage.
Most people still think I am crazy, because I am missing out on my tax deduction on the interest payment. Well I still feel differently about this. Since I am paying this interest in the first place and I also pay tax on my savings. Which yields a whopping 0,75% in interest at the moment. And I am paying around 5% on the mortgage.
for me it’s an easy way to save money each month without having to do anything , and I need to pay back the loan anyway, so why not now. It might not make for a spectacular story at a party but saving 5% is exciting enough for me. More people should do it in my opinion. Debt is debt , no matter what you have as collateral. Your net value might include the value of your house , but you have to live somewhere. So having a mortgage free house will help you a long way too financial independence. Just do the maths.