Hypothetical Financial Question

[Ginger]

$100 000 is not worth running away with......is it? LOL


what would happen to the mortgage when you have to give the money back though kate?
wouldn't they charge you some sort of fee for pulling the money out?

[Phteven]

100k? I wouldn't bother. If you have to give it back in 2 years you have to play safe so you can't take the kind of risks that might see a great ROI. I don't do interest or mortgages so for me I'd just tell them to keep it lol.
Maybe I'd buy a house boat lol.

[HotI]

Depend on the bank, i reckon.

We have the mortgage with a credit union and are $x,000 ahead. So we don't pay interest on the $x,000. [Interest = % x (Total -x,000) ]

I think that if we wanted to take the $x,000 out again, we would just have to pay interest on this amount again. [Interest = % x Total]

That is how it would work, if i ruled the world anyway.

[Inanna]

I am with Chloe...If you put it on your mortgage and kept paying the usual repayments there would be a fee for withdrawing the money... Unless you have a line of credit?

If it was for only 2 years to my way of thinking it's not enough time to get any sort of return on investment....

Id say thanks for the thought...

[Astrid]

I would put it into the mortgage. Ours is a variable rate one, so we can make extra repayments and any redraw on it costs only $25.00. So I think I could afford the $25 to save $1,000's in interest.

[Loula]

This hapopened to a friend of mine. her mum sold her house and moved in with her parents and so gave all her children 100K until she was ready to buy again.

My GF put the money onto her mortage and then just re drew when it was time to give it back to her mum. I believe it made a huge difference even though it was only for a bit over a year, it was hard seeing theinterest going back up afterwards.

All in all it was better than her mum being taxed and her mortage interest being high over that period.

Hope that makes sense?

[Bumperstump Cummerbund]

We're with PNCS and we have what they call a 'mortgage breaker' account - any money in there acts like it is in the mortgage when it comes to calculating interest, but we can use it as a normal bank account. So you could put the $100k in there, and then for the next 2 years your mortgage interest is calculated with you having paid an extra $100k off, which would save your a fair whack. And if you kept your normal repayments up, you'd be well over the odds at the end of it, KWIM?

And of course, while you've got $100k in your bank account, I would be getting regular account balance receipts, all printed with that lovely number on it, and make up a wall collage with them, so you can remember the good times

[Karina]

i think I'd put it on my mortgage for that 2 years and then redraw it at the end. I'd have to keep redrawing the extra though so the mortgage doesnt close, but it would save lots in interest. My bank doesnt charge any fees at all for redrawing so thats not going to be a problem. Or maybe I could put some on my mortgage and some of it in a term deposit.