Will We Pay Off The Interest-Only Mortgage Within Two Months?

I had this crazy but really good (I like to think) idea on how to pay off the interest-only part of the mortgage within two months…or even a month from now.

The upcoming week the husband will receive a humongous amount from Uncle Sam. A nice tax return. That leaves the interest-only part of our mortgage with a couple of thousand euros. We’re paying 3,1% on that part of the mortgage.

We have an emergency fund which is double the amount I’d like it to be. The husband wanted to be on the safe side. Interest rates are crap and we get 1,75% on our emergency fund.

I guess you gathered my really good plan by now, right? I asked my husband: “After we’ve transferred the tax break to the interest-only mortgage…would it be an idea to pay off the rest with a small part of the emergency fund? And quickly replenish the emergency fund after that? This will save us money!”

He’s warmed up to the idea and I think we’re going to do this! I’ll keep you posted! I’m soooooo looking forward to the day that we can ask the bank to close the interest-only mortgage! We still have the savings mortgage left, which takes up 6/7 of our total mortgage number. On that part we pay 4,35% BUT we also receive 4,35% on the money we’ve saved so far. We can’t throw in more money because of weird and difficult tax rules here in The Netherlands.

Hopefully we’ll receive the dough very soon. I’m rooting for Monday or Tuesday.

What would you have done if you were us?

Love,

Mrs EconoWiser

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