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An extra payment each month to help reduce a debt.
These payments can dramatically reduce the term of a mortgage such that a 25 year mortgage can be paid off ina much shorter perios of time.
Interest only mortgages do not involve the payment of the principal of the loan (only the interest). Extra payments are therefore required to reduce the mortgage loan amount due.
Not all mortgages will allow additional principal payments. Flexible mortgages are a good idea if it is likely that income will increase or if there is a seasonal basis to earnings.It is important to be disciplined an overpay when you can afford if the mortgage is on an interest only basis.
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