07 Aug 2022

What happens if I pay 2 extra mortgage payments a year?

Two Extra Mortgage Payments

Mortgages can be confusing. If you have taken out your very first mortgage and do not know how the process works, it is good to speak directly with your mortgage lender or a bank as they can assist you with the process. However, if you want to make good money moves, it is essential to pay two extra mortgage payments a year. 

Paying two extra repayments a year can assist you with lowering the principal amount of your loan. Lowering the principal amount of your loan, in turn then also decreases the amount of interest that you have to pay on the loan. If you do not want to pay your entire mortgage early, but want to make good dips into the principal amount, it is a good idea to pay a few extra repayments a month. 

If you are looking for other ways to decrease debt, you can also round up to the next 100 when you make repayments monthly and this will come off your repayments and the principal amount. It is great for paying off debt quicker and helps you build good habits. Sometimes, it is best to make large mortgage repayments instead of the minimum due.

Two Extra Mortgage Payments Conclusion

In conclusion, making two extra repayments a year on your mortgage can decrease the amount of debt you have. Mortgage house lenders can assist you in finding ways to decrease that and pay your mortgage quickly.

Fast track your home loan
Apply Online Book a Call Back
133 144

Why Choose Mortgage House?

Award Winning

Experienced

Approachable

Innovative