Re: Should I make overpayments on mortgage?

On 15 Sep 2006 01:26:55 -0700, "Robert" <robertmlaws@xxxxxxxxx> wrote:


Ronald Raygun wrote:
renneds wrote:

Someone once told me to not bother making overpayments on a mortgage.
Their logic was the £1000 I put in today is worth more in real terms
than £2000 saved in 25 years time.

That's nonsense. If making overpayments were "bad" in this way, then
"good" would be to underpay, or even better not to pay at all, not
even interest.

You mean an 'interest only' loan where the interest is rolled into the
capital. You'd rely on house values rising fast enough so that when
you sell the hosue the proceeds cover the debt that has, by then,
accumuated.

Sounds good to me.

Robert

What do you mean when you say: "an 'interest only' loan where the
interest is rolled into the capital"?

An "interest only" loan refers to only the interest being paid.

--
Peter Saxton from London
peter@xxxxxxxxxxxxxxxxx
.

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