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Mortgage Query

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  • 02-06-2010 8:16pm
    #1
    Bugnug
    Banned (with Prison Access) Posts: 602 ✭✭✭


    Might seem like an odd question, but, is it better to increase your mortgage repayments or reduce the time scale of the loan?


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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    well by reducing the timescale by default you have to increase your monthly payments.

    so essentially its the same thing ;)


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    #3
    subway
    Closed Accounts Posts: 6,131 ✭✭✭subway


    technically, they are the same thing


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    #4
    Jo King
    Banned (with Prison Access) Posts: 2,139 ✭✭✭Jo King


    If you increase your payment you will reduce the interest payable and the loan will be paid off sooner. you may be able to do this without having to formally agree with your lender that you will clear the loan early. There is an advantage in not committing yourself to an earlier repayment date. The reason is flexibility. If you get into financial difficulty in the future you may find it easier to bring down the payments


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