Faster Mortgage payments
October 8th, 2007 | by admin |After remortgaging, the next best solution for saving money on your mortgage is making faster mortgage payments.
Faster Mortgage payments can be made in two ways:
- Paying extra monthly repayments
- Paying a lump sum when available
The good thing about making extra / faster mortgage payments is that everything goes on reducing the capital debt.
At the moment I am paying £800 a month on a £135,000 mortgage, but, only about 10% of that mortgage repayment is going on reducing the debt! The rest is just interest payments. This is because I am only 2 years into my mortgage repayment. Over the course of time, the % of my mortgage capital repayments will increase. But, this shows that you can pay off your mortgage faster, if you can make extra payments, especially in the beginning of your mortgage payment.
See also:
- Mortgage options when struggling with repayments
- How do I pay off my mortgage fast?
- How to Pay off your mortgage early
Mortgage Calculator for making faster mortgage payments
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