Five years ago we sold our apartment and bought a house. We took a mortgage, to cover some needed improvements and renovations. Not a big mortgage but still with a monthly rate of 700 € for 10 years.

The mortgage has a fixed interest rate of 0,7%. Yes, you read it right! When we took it interest rates were at the lowest peak since decades.

Today, after COVID and the turmoil going on in the world, interest rates are high again. Interests offered by banks on savings accounts are up to 4,5%.

We have savings to pay off the rest of the mortgage. Should we do that??

Of corse not, that savings got invested at 4% .

I wish I had taken a bigger mortgage 😜

By F

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