Your mortgage
Path to payoff
When the fund value catches up to the remaining debt
Borrow more, or put cash down?
Buying a property with cash at hand. Rate and return are set here, the term comes from above — both options cost you the same per month (Kč 26,841).
The return (8.6 %) beats the rate (5 %) — the bigger mortgage wins: Kč 10,076,245 more at the end (30 years).
Year by year
● marks the first year in which the fund covers the remaining debt — you could pay the mortgage off. The better path (more money at the end) is marked on its tab.
Until year ● you pay the Kč 9,126 instalment and put Kč 5,000 into the fund each month. Once the fund matches the remaining debt (12 years 3 mo), you pay the mortgage off in one go — the debt drops to zero and Kč 8,638 stays in the fund. From then on you invest the full Kč 14,126 a month (the freed instalment plus the aside) until the original term ends (30 years).
| Year | Remaining debt | Invested in the fund | Fund value |
|---|---|---|---|
| 0 | Kč 1,700,000 | Kč 0 | Kč 0 |
| 1 | Kč 1,674,919 | Kč 60,000 | Kč 62,422 |
| 2 | Kč 1,648,554 | Kč 120,000 | Kč 130,430 |
| 3 | Kč 1,620,841 | Kč 180,000 | Kč 204,522 |
| 4 | Kč 1,591,710 | Kč 240,000 | Kč 285,244 |
| 13 ● | Kč 0 | Kč 862,134 | Kč 140,051 |
| 28 | Kč 0 | Kč 3,404,808 | Kč 5,662,968 |
| 29 | Kč 0 | Kč 3,574,319 | Kč 6,346,001 |
| 30 | Kč 0 | Kč 3,743,831 | Kč 7,090,147 |