I’ve seen this touched on in a couple of threads, but haven’t found a definitive answer.
In a position to pay a lump sum off our mortgage. Looking at ~€50k. Currently in a fixed term, but checked with bank today and was told penalty would be negligible.
I’m trying to figure out whether to reduce term or monthly repayments. Having used Karl’s Mortgage Calculator there seems to be an €80k overall savings swing in favour of reducing term. How exactly does that work?
If I was to reduce repayments I would also continue to overpay by 10% monthly, which would be close to my current amount.
In a position to pay a lump sum off our mortgage. Looking at ~€50k. Currently in a fixed term, but checked with bank today and was told penalty would be negligible.
I’m trying to figure out whether to reduce term or monthly repayments. Having used Karl’s Mortgage Calculator there seems to be an €80k overall savings swing in favour of reducing term. How exactly does that work?
If I was to reduce repayments I would also continue to overpay by 10% monthly, which would be close to my current amount.
