Karl mortgage link prepayment option

[Chantilly]

Dear all,

I have been playing around with Karl mortgage link to see the various options for early payments of a mortgage seeking to reduce the term.
On a 200k variable mortgage, it is showing that a 10k annual prepayment is reducing the term for more years than a one off prepayment of 50K payment for example.
Am I reading this correctly?! Thank you for you help to understand best option to reduce the term. Thank you

 

[twofor1]

You must be putting something in wrong.

I put €200K @ 3% for 15 years into this calculator https://www.drcalculator.com/mortgage/

Making a once off payment in month 12 of €50K reduces the term by 4 years and 3 months.

Making 5 x €10K payments at 12, 24, 36, 48, 60 months reduces the term by only 4 years.

 

[RedOnion]

You must be putting something in wrong.

Yes, I suspect the OP is inputting a recurring annual prepayment of 10k, so the total overpayment is far more than 50k.

understand best option to reduce the term

The earlier you make the overpayment, the more interest you'll save. So making a 50k payment now will have a bigger impact than spreading that payment over 5 years.

 

[Chantilly]

Thank you very much for clarifying!