Search results

  1. R

    MSE overpayment calculator suggesting it is better to overpay a 3% mortgage than save interest at 4.5%

    @honoluluwindow Ok so your savings account dont pay interest monthly, they pay once a year. Meanwhile your mortgage adds interest monthly. Its different. In a way your mortgage compounds interest reduction
  2. R

    MSE overpayment calculator suggesting it is better to overpay a 3% mortgage than save interest at 4.5%

    @honoluluwindow It can be explained by knowing the assumptions. It assumes realistic scenario but it does not look consistent. While your mentioned scenario 4.5% easy access account is unrealistic there are accounts paying like 2%. However. They pay interest only once a year but not monthly ...
  3. R

    MSE overpayment calculator suggesting it is better to overpay a 3% mortgage than save interest at 4.5%

    @greatlakes4ever Wrong. If you pay less interest on your mortgage but your monthly mortgage payment (+overpayment) is the same you overpay your saved amount. And it adds up with time. So amount of future interest reduces more. Also you never pay tax on your overpayment but not necessarily true...
  4. R

    MSE overpayment calculator suggesting it is better to overpay a 3% mortgage than save interest at 4.5%

    @honoluluwindow There is no issue at all
Back
Top