Interest only mortgage question

M

MaxedOut

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Hi, my mortgage is an interest only one and the interest only period will expire about 5 years from now. I'm putting by a certain amount of money every month and plan to pay small amounts off from time to time. Can I pay those amounts off the full amount of the mortgage (ie the part I'm not paying off right now) without affecting the terms of my interest only loan, or do I have to pay it as more interest? Was hoping to pay these amounts off the full amount so I won't be overwhelmed by the full figure in five years time.
 
When you say the full amt do you mean the capital ? If you pay a lump sum off you will have 2 options - pay the money off the term of loan - therefore reducing the overall years of the loan. Or pay the money off the value of the loan - this will reduce the future monthly payments you have to make but the term will stay the same. If you search on this site there are some other posts about lump sums - also do a google search and you will get some idea which is the better option for you.
 
Thanks for that. What I mean is paying amounts of the capital amount, and the question I have is, if you do that when you have an interest only mortgage, does that effect the mortgage in any way, ie there's no change to the interest only terms?
 
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