Overpayment of mortgage monthly or annually? Which option is better?
Hi
I am sure that this thread has been discussed here. The problem that I am having when I am calculating which option is better to lower my principal. Should I pay extra monthly on my mortgage or would it better to pay the lump sum annually? I worked out the figures and I ended with the same amount if I had paid monthly and the same amount if I had paid the lump sum. I thought that if you paid extra monthly you are supposed to do better as the principal keeps coming down. Any advices from the experts here ....
I am sure that this thread has been discussed here. The problem that I am having when I am calculating which option is better to lower my principal. Should I pay extra monthly on my mortgage or would it better to pay the lump sum annually? I worked out the figures and I ended with the same amount if I had paid monthly and the same amount if I had paid the lump sum. I thought that if you paid extra monthly you are supposed to do better as the principal keeps coming down. Any advices from the experts here ....