Should I extinguish my mortgage?

[tierras]

I bought a house for 600k 8 years ago, with a loan of 450k. I managed to bring the mortgage down to 180k. I'm 45 and my partner and I earn, in total, ca. 300k chf/y.

Should I try to extinguish my mortage, aiming at paying back ca. 30k/y, or should I stop throwing money at it?

FYI I'm investing in ETFs pretty much everything I don't put into the house

Thanks for your perspective!

 

[megan89]

@tierras The long-term return on ETFs will be higher, so financially that makes more sense. Whether the difference is worth the peace of mind of a paid off house is up to you.

How about paying into PK to close gaps and save taxes? Worth taking a look at with your household income.

 

[keith7731]

@megan89 *the long-term return on ETFs has been historically higher, for the future who knows

 

[hymnpraise]

@tierras You may want to add the interest rate of your mortgage for better advise on benchmarking versus etfs.

 

[tierras]

@hymnpraise You're right, thx! I just added a comment

 

[virtualhope]

@tierras Take the higher taxes in consideration would be my 5 cent.

 

[lizah]

@tierras Did you check if you could increase the value of your house instead of reducing your mortgage?

What I mean is, investing in solar panels, new insulation etc... You could deduct it from your taxes...

(That's only my opinion and I would totally do it if I had your income )

 

[emmasmithlondon]

@tierras If you can get more than your % on the market it is dumb to continue lower your debt

 

[hrosec]

@tierras This is a tax question. Calculate your taxes with and without a mortgage and interest payments.

 

[want2conv]

@tierras The answer is Yes or No. depending on whether you would rather give money to the bank or to the state.

 

[tierras]

Right.. my mortgage of 180k chf will expire next june, and I'll need to make a new one. I'm not sure what the rates will bw then..

 

[lilysmith2]

@tierras male a new one, you will safe in tax and ale to invest more! 180k is not much at all anymore! but you should be able to do the math for yourself!