capital payments - reduce the length or reduce the monthly mortgage fees?

mondayding

I'm about to come into some cash, enough to pay off some capital on my mortgage, but I have no idea what I should do once this is done, do I reduce the number of years left to pay or reduce the monthly fee?

Mondayding

Shambler

Hi, It depends on what is more important to you,

1) Reduce your monthly payments to free up cash now
2) Keep paying the same monthly payment which will reduce the total amount you end up paying for the mortgage

You can either save money now or save money in the long term, option 2 is best if you can afford to keep up your current monthly payments.

KTF

If you are planning to pay off some money now, make sure you wont be penalised for doing so.

mondayding

Thank you Shambler, KTF, that's all I needed to know, I can afford to keep the payments as they are now and am with ING so there are no fees - their little trick is that if you move house you have to get a new mortgage, sneaky !!!!!!s slipped that past me till about a day before my mortgage moved.