Now, more than ever, it’s time that homeowners do whatever they can to lower their mortgages.
With the rise in European interest rates, it is expected that higher mortgages bills will be quick to follow.
Homeowners are beginning to get more and more comfortable as economic recovery since the recession has been tracked as going in such a positive way.
By overpaying on a mortgage the borrower will knock tens of thousands off of their mortgage easily. And they would dramatically cut back on the time it takes to finally become mortgage free.
According to Dowling financial, by an increase of 100 euro per monthly payment, the average mortgage would be paid off three years earlier and save nearly 12,826 euro in interest.
A small increase in payments leads to quite a substantial savings. Probably an effort worth it to most borrowers.
Those that should keep their guard up and remain mindful are those with a fixed rate mortgage.
Overpaying on fixed-rate mortgages could cause borrowers to be hit with an early redemption fee. A charge that could potentially be …