how to save money on your mortgage

[daithi]

by paying your mortgage bi monthly
you can save thousands on your mortgage
if ya had a 300,00 mortgage
you would save 54,000

all ya have to do is make payments on your mortgage every 2 weeks
add over the period of one year you have paid an extra months mortgage in the year

lets say your mortgage is 700 euro monthly so in one year you pay
700x 12 which is 8400

but if ya pay bi monthly ya pay half of that mortgage which is 350
every 2 weeks which is 26 payments in a year which adds upto
350x26 = 9100

doing this over a 30 year mortgage gives you 30 months of extra payments
which is 2 1/2 years


also mortgage interest is calculated daily so instead of it building for 30 days before a payments been made its only going 14
so theres less interest to be added

as the amount is deducting at a faster rate

[super jumbe]

That?s a very good advice, suppose you get redundancy or get sacked or have an accident, because anything can happen in 30 years you are f****d only time can tell.

[GastonJ]

I just overpay mine while the interest rate is low, soon gets the amount down as well. Been paying almost double for the last 2 years, soon be gone

[daithi]

it can be done over any length of mortgage
if ya have the money ya should do it in my opinion
cant be done on a fixed mortgage is all

[oneman]

check your mortgage T&C, not all allow overpayment without penalties.

[thered]

by paying your mortgage bi monthly
you can save thousands on your mortgage
if ya had a 300,00 mortgage
you would save 54,000

all ya have to do is make payments on your mortgage every 2 weeks
add over the period of one year you have paid an extra months mortgage in the year

lets say your mortgage is 700 euro monthly so in one year you pay
700x 12 which is 8400

but if ya pay bi monthly ya pay half of that mortgage which is 350
every 2 weeks which is 26 payments in a year which adds upto
350x26 = 9100

doing this over a 30 year mortgage gives you 30 months of extra payments
which is 2 1/2 years


also mortgage interest is calculated daily so instead of it building for 30 days before a payments been made its only going 14
so theres less interest to be added

as the amount is deducting at a faster rate

i used to mine when working i cant afford it now it is very sound advice especially as the interest rate is so low it can take years of your mortgage and save thousands in interest which is the largest part of your mortgage especially in the first half of it

its a better return than putting it in a savings account for sure in the UK

[GastonJ]

Sound advice, I think I got 0.98% interest rate on my ISA last year, if it doesn't come up to scratch this year it's all going to go into my mortgage instead, at least that way I'll be paying that for a lot less time. Banks are just ripping people off anyway. If you go to get a new mortgage they are charging around 5.5% interest rate yet they give next to nothing on savings - talk about making hand over first.

[aeronic]

Paying 20% extra each month, over the whole period of your mortgage, will reduce the time taken from 25 years to approx 14 years!