The main rule to follow is that payments should always be comfortable for the family budget. If you have funds for early repayment, you should first analyze the prospects:
if you have a stable income and a safety cushion, it is worth reducing the loan term;
If your income is not fixed and you have no safety cushion, you should put some of the money aside so that you still have funds for emergencies. The rest can be used for early repayment, but it is better to reduce the payment amount. This method will protect you from late payments and the need to pay fines and penalties.
Your safety cushion should be large enough to cover all your obligations for at least a month. So don't spend all your free money on paying off your debt faster - it's better to leave some of it forsavings account.
We suggest considering an unusual option that combines two jordan mobile database types of payments. The scheme looks like this: you constantly reduce the size of the monthly payments, but in fact continue to pay the same amount. Each month you pay more than is established in the loan agreement and ultimately pay off the bank much faster.
Under this scheme, overpayments will be approximately the same as with a constant reduction in the loan term. But since the amount of the mandatory payment is constantly reduced, in case of financial difficulties it will be much easier for you.
What's better: paying off your mortgage in small amounts or saving up?
Since interest is always charged on the remaining debt, it is worth paying even small amounts at once. Let's illustrate the difference in the form of a table.