Some homework for ABCDiamond!!

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Some homework for ABCDiamond!!; cos I know he loves crunching figures!
Topic Started: Oct 14 2009, 08:51 PM (32 Views)
Bridiej	Oct 14 2009, 08:51 PM Post #1
Chattermonster Extraordinaire! Posts: 5,291 Group: Diamond Member Member #24 Joined: February 17, 2005	OK ABCD I have a question for you. Currently we have two mortgages: $137,707 @ 5.81% - we pay $210 a week $76,140 @ 5.66% - we pay $200 Both of these are slightly overpaid above the weekly requirement. In addition we save $25 a month into a "high interest" savings account for Katie, it pays 6% interest then every year the balance is transferred into another account paying no idea but not as much. Balance so far for this year is $410. My question is - would we be better off paying that $25 off one of the mortgages, then when the balance is cleared think about saving some for K's future or is what we're doing OK - basically which is the best way to make the most of the money? Hope you dont mind my asking but you seem to enjoy facts and figures :flowers: Edited by Bridiej, Oct 14 2009, 08:52 PM.



Tiredwithtwins	Oct 15 2009, 08:02 AM Post #2
Admin Posts: 7,158 Group: Admin Member #98 Joined: September 7, 2005 Current Residence (State or County): UK ... lets hope not for too much longer	... i can hear his calculator ticking away from over here :lol: questions like this crop up on money saving expert regularly, and im sure they say you are better off paying off a debt than saving ... but then if i was any good with money id wouldnt be where i am now, so probably best ignore me :yes:



ABCDiamond	Oct 15 2009, 08:21 AM Post #3
Posts: 3,056 Group: Admin Member #1 Joined: January 22, 2004 Residency Status: Permanent Resident Current Residence (State or County): 4165, SE Queensland	Putting the regular $25 pm into the mortgage, won't save much in the first 2 years where you get that 6% interest rate on the savings. However, after that rate drops you may save about $18 in year 3, $35 in year 4, $51 in year 5, etc. Maybe a bit more depending on the tax situation of that 6% interest that you get. Long term it is very good to put every spare $ into a mortgage.



Bridiej	Oct 15 2009, 08:30 PM Post #4
Chattermonster Extraordinaire! Posts: 5,291 Group: Diamond Member Member #24 Joined: February 17, 2005	Ok thanks ABCD :flowers:



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