Quizzes & Puzzles0 min ago
Lump Sum! Pay off mortgage or high interest account.
1 Answers
When I leave the army I have a couple of choices regarding the amount of lump sum I could recieve. One of around �42k or one of �28k. The higher yields a lower monthly pension and visa versa with the lower option. I currently have a mortgage of �44k over 21 yrs to pay. Should I clear a chunk of my mortgage and finish it early (take out an offset account), or invest in a high interest account. If I take the �40k package I would consider utilising �30k and �20k if I took the lower package. A bit confusing but thanks in advance.
Answers
Best Answer
No best answer has yet been selected by SuperSel. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Hi,
I suggest you compare like for like.
Your 21 year mortgage will need to be paid for as long as you have the house, typically 21 years ( as you mentioned)
If you put any money in a high interest account, you would have to leave it there for 21 years to be able to make a comparison of the investments.
In your position , I would most definately pay off the mortgage and use whatever I currently pay every month towards an investment fund/ high interest account.
cheers
I suggest you compare like for like.
Your 21 year mortgage will need to be paid for as long as you have the house, typically 21 years ( as you mentioned)
If you put any money in a high interest account, you would have to leave it there for 21 years to be able to make a comparison of the investments.
In your position , I would most definately pay off the mortgage and use whatever I currently pay every month towards an investment fund/ high interest account.
cheers
Related Questions
Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.