Hi everyone,
I’d like some input on a financial decision I’m considering.
**Mortgage details:**
* Remaining balance: €151,126.64
* Remaining term: 277 months (\~23 years)
* Interest rate: 2.65% fixed
* Monthly payment: €729.94
**Available cash:** €25,000
I’m considering three options:
1. Mortgage prepayment reducing the monthly payment
2. Mortgage prepayment reducing the remaining term
3. Investing the €25,000 long-term (index funds / ETFs / stocks) over \~23 years
I already invest in an **S&P 500 ETF**, and I believe adding MSCI World would be somewhat redundant due to heavy US exposure (please correct me if I’m wrong).
👉 Main questions:
* Does it make sense to prepay a mortgage at a relatively low interest rate like 2.65%?
* If investing instead, which assets would best complement an S&P 500 position?
* Would you split the €25,000 between mortgage prepayment and investing? If so, how?
Profile: long-term horizon, medium–high risk tolerance, no short-term liquidity needs.
Thanks in advance!