coops: - interest rate rises mean our mortgage payments have gone from $150/wk above the minimum when we took out the loan (in 2001) to just on the minimum now - without any change in the actual repayments. Extra money would be SO nice because at the moment we have no breathing space - if the car breaks down (which it's prone to doing) we're stuffed.
While clearly I have no idea on your financial situation and how it is likely to change.
I will suggest that while owning real estate can be a good investment it is also a lifestyle choice.
So owning your house should improve your lifestyle.
How much the big mortgage is interfering with your lifestyle only you can decide.
Equally what interest rates will do in the future who knows?
But looking at
http://www.nab.com.au/Personal_Finance/0,,79017,00.html?urid=1205117365562
It seems the NAB is not expecting them to go down in the next two years.
How long you can get by with scrimping is a tricky question.
However it is almost certain given the length of a typical mortgage that the hot water service will need replacing along with the car before you get the house paid off.
It is also a fact of economics that inflation can be good for people who owe money as long as they get pay rises similar to the rate of inflation.
This is because a house repayment of $1000 (hypothetically) will be a smaller percentage of the household income if the household income rises over time (assuming interest rates are static so the repayment stays the same)
Enjoy the new job.
