Considering extra mortgage payments? Given the current landscape, the question is– is it more prudent to overpay your mortgage or bolster your savings?
The crux of the decision hinges on your existing mortgage rate. If your mortgage rate is comparable to or exceeds your savings rate, it might be a strategic move to allocate any surplus funds towards mortgage overpayments. Of course, the optimal choice depends on your unique financial circumstances.
Opting for overpayments results in a reduction of the outstanding loan balance, leading to a corresponding decrease in monthly repayments. Alternatively, you could choose to keep monthly payments the same and reduce the mortgage term.
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Your home may be repossessed if you do not keep up repayments on your mortgage