Hi forum members,
I'm looking for some advice / different points of view on my situation:
I have a PPOR in a great location within 4km of a city centre valued at about $600k.
My mortgage is $140k.
I have $90k sitting in 100% offset account at 4.35%, 2 years fixed.
I am currently paying IO, and due to switch to P&I in about 3.5 years
My equity in my PPOR is about $550k and I have no other debts.
Super is about $90k.
My income is fairly low (about $35k) as I work part-time by choice. I am somewhat interested in buying an IP, however, my work situation is currently somewhat unstable due to funding changes in my sector, so at this time I'm not so eager to take on more debt.
My age is 48.
My question:
With my fixed interest loan I am allowed to pay $20k into the principal each year.
Do you think it's advisable to pay down the principal as much as possible so I can pay off the mortgage entirely?
Or is it better to just pour everything into the offset account, eventually reaching $140k in the offset and therefore $0 interest per month? In 3.5 years the loan will switch to P&I.
I'm sure there are factors I haven't considered, so I would be interested in hearing others' points of view.
thanks
I'm looking for some advice / different points of view on my situation:
I have a PPOR in a great location within 4km of a city centre valued at about $600k.
My mortgage is $140k.
I have $90k sitting in 100% offset account at 4.35%, 2 years fixed.
I am currently paying IO, and due to switch to P&I in about 3.5 years
My equity in my PPOR is about $550k and I have no other debts.
Super is about $90k.
My income is fairly low (about $35k) as I work part-time by choice. I am somewhat interested in buying an IP, however, my work situation is currently somewhat unstable due to funding changes in my sector, so at this time I'm not so eager to take on more debt.
My age is 48.
My question:
With my fixed interest loan I am allowed to pay $20k into the principal each year.
Do you think it's advisable to pay down the principal as much as possible so I can pay off the mortgage entirely?
Or is it better to just pour everything into the offset account, eventually reaching $140k in the offset and therefore $0 interest per month? In 3.5 years the loan will switch to P&I.
I'm sure there are factors I haven't considered, so I would be interested in hearing others' points of view.
thanks