Family & Relationships0 min ago
Pay Mortgage off early
2 Answers
I have a small 2nd mortgage. I owe about �3600. I pay �70 per month and it is due to end in Dec 2010. I have �3000 in a building society account earning about 5% interest. Should I put to it and pay the mortgage off and use the �70 to pay off the main mortgage quicker,,
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If the interest rate on your mortgage is higher than 5% it makes sense to reduce your mortgage debt more quickly as long as you leave yourself enough cash for emergencies. But check with your mortgage provider first that there isn't a penalty for doing this and that any extra money you pay is credited straight away instead of only being accounted for at the end of the year.
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