Mortgage payments - Very specific question ...
Let's say your monthly mortgage payments amount to $1k per month @ 30 year amortization.
You are allowed to: (1) double up on monthly mortgage payments, (2) pay up to 15% lump sum that can be done at any time during the year and as many times as you want as long its below the 15% and within the year. All other variables will be held constant. Note that the any money towards the lump sum goes directly to paying off your principal.
- Put $1k per month towards the mortgage payment (which is the minimum requirement)
- Put $1k per month into your lump sum allowance
- Put $2k per month towards the mortgage payment (doubling up on monthly mortgage)
- Put $0 per month into your lump sum allowance
Which way is better?