Overpayment Question
Zola.
Forumite 1.9K Posts
Probably a silly question, but I will ask anyway.
Say you owe £150,000 on the mortgage. When you make the regular monthly mortgage payment of £500... it seems only about half of that comes off the actual debt figure owed, due to interest.
If you made an overpayment of £2000 out of the blue, would it be the same effectively, or would it knock £2000 off the total owed as its not in the standard mortgage timeline?
Say you owe £150,000 on the mortgage. When you make the regular monthly mortgage payment of £500... it seems only about half of that comes off the actual debt figure owed, due to interest.
If you made an overpayment of £2000 out of the blue, would it be the same effectively, or would it knock £2000 off the total owed as its not in the standard mortgage timeline?
"Save like a pessimist, invest like an optimist"
"The purpose of the margin of safety is to render the forecast unnecessary"
"The borrower is slave to the lender."
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"Every bit of savings is like taking a point in the future that would have been owned by someone else and giving it back to yourself"
"Energy flows where attention goes"
"The purpose of the margin of safety is to render the forecast unnecessary"
"The borrower is slave to the lender."
"Money is not to buy stuff. Money is to buy freedom."
"Every bit of savings is like taking a point in the future that would have been owned by someone else and giving it back to yourself"
"Energy flows where attention goes"
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