Overpayments: Reduce terms or payments?

marcosscriven

Hi

I've been making some overpayments to my mortgage.

I've only just discovered though that mydefault/minimum payment stays the same - thus the terms is reduced, rather than the required monthly payments.

Is that ok do you think, or would it be better to get reductions in payment instead, with the same term?

Presumably now if I pay the default amount, every monthly payment is effectively an overpayment??

Marcos

ragingbass

If you can afford it, I'd keep your payments the same. This will reduce your term and the amount of interest you'll pay in the long run