Because depreciation pays off
Whoever reduces the mortgage receives a return, without any investment risk.
Increased interest rate risk: Mortgage interest rates are rising, increasing the interest burden on homeowners.
Illustration: Christina Baeriswyl
I am retired, have an annuity including AHV of 7,300 francs and own a house worth 1.2 million francs. Then I have 600‘000 francs in the savings account and an expiring mortgage of 120‘000 francs with 1.45% interest and a mortgage of 135‘000 francs at 2.40%, until 2024. Should I pay off the expiring mortgage or take out a Saron mortgage so that I can pool the loans and invest the money in 2024? Reader question from BW
