I have €77,000 in my bank account. My mortgage has €75,000 left on it (without interest) and a term of 14 years remaining. The current interest rate is 4%, but of course this can change.

Should I pay off this mortgage? Or would there be much smarter things to do with the money, i.e. investing or buying a second home?

I want to actually get some return on the money, but paying interest on money I don't need to borrow anymore seems unnecessary to me.

  • Do you have investments in addition to this, or is the 77k roughly all of your money? Do you add to that number each month or is it the result of some windfall?
    – Hart CO
    Commented Nov 24, 2017 at 17:30

1 Answer 1


You'd only be left with €2,000 in the bank, so paying it off completely in a lump sum now would be unwise. However, dropping, for example, €35,000 onto it is a reasonable option. That would give you still €42,000 is the bank (an excellent emergency fund), save you a lot of interest, and greatly speed up the repayment schedule.

(Changing subjects: how much interest is it earning in the bank.)

  • less than 1% :(
    – Cloud
    Commented Nov 24, 2017 at 15:47
  • @Cloud there must be accounts which pay more...
    – RonJohn
    Commented Nov 24, 2017 at 15:56
  • Any suggestions welcome my friend. I do not have great knowledge in finance.
    – Cloud
    Commented Nov 24, 2017 at 16:14
  • Not being in the UK, I don't know specifics. Google for "high rate savings accounts" and "high rate certificates of deposit".
    – RonJohn
    Commented Nov 24, 2017 at 19:33

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