Overpaying your mortgage — even by a small amount each month — cuts the balance faster, so you pay interest for less time. This shows the interest you would save and how many years you would knock off. Most lenders let you overpay up to 10 percent of the balance each year without a penalty; check yours first.
Own it sooner
Mortgage know-how.
Mortgage advice book
Pay off faster.
Personal finance book
Make overpayments count.
Affiliate links — as an Amazon Associate ABOS Digital earns from qualifying purchases.
Frequently asked questions
Is it better to overpay or save?
If your mortgage rate is higher than the interest on savings (after tax), overpaying usually wins. Keep an emergency fund first, though.
Will I be charged for overpaying?
Many fixed deals allow overpayments up to 10 percent of the balance a year penalty-free. Beyond that, an early repayment charge may apply.