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
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.