holding off paying extra on mortgage till interest rates go down.

[construct_06]

Is this wise?

if i have some money available now and say interest rates are 3.75% (i have Nib tracker)

wud i be better off paying that money now into the mortgage or waiting till the interest rates drop again by another 0.5%?

 

[Senna]

why would the interest rate have any effect on when you pay extra?

 

[PaddyW]

More money going into capital if interest rate drops?

 

[DoctorEvil]

More money going into capital if interest rate drops?

Nope.

The same amount comes off capital either way.

Interest is charged daily on the current capital balance so pay now and you will pay less interest.