Shortermortgagetermcan saveyoutensofthousands

QAbill.tyson@mailonsunday.ie

twitter@billtyson8 I am getting a mortgage for €220,000 at 4.4% interest. I am not sure whether to go for a shorter or longer repayment term. How much interest would I save by paying back the loan more quickly? Mortgages involve huge sums of money, which makes the interest mount up alarmingly over long periods. With a 15-year mortgage, just 27% of what you repay is interest.

But if you stretch the loan out to 35 years, almost half of everything you repay is interest.

Over very long mortgages, in particular, you pay very dearly for every extra year. As you can see from the table below, monthly repayments on your loan differ by just €182 per month between a 25-year and a 35-year term. But with the 35-year term you pay over €60,000 more interest.