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overpaying
weehev
Posts: 58 Forumite
this might be a silly question so appologies for my naivety (sp)!!
if you overpay on your mortgage does that go to increasingy your equity or reducing your interest, or both?
i hope that makes sense!! :eek:
if you overpay on your mortgage does that go to increasingy your equity or reducing your interest, or both?
i hope that makes sense!! :eek:
0
Comments
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Both.
Interest accumulates on debt.
overpayment reduces debt(increases equity) so reduces interest.0 -
ahhh, i see.
now i feel kinda stupid
0 -
ahhh, i see.
now i feel kinda stupid
Don't
A lot of this stuff is realy simple but not always obvious unless explained in simple terms.
Have a play with a mortgage calculator and see how the payments change when you vary the numbers.
I uses this one
http://www.whatsthecost.com/mortgage.aspx
Stick your mortgage in and press "calculate" then "details".
(to simulate overpayments go interest only and make a payment)0 -
ta much
:beer:0
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