Many people wonder if it is convenient to pay a little more of your mortgage and prepaid amount. Banks due to administrative matters do not accept a lower prepayment than the contracted monthly payment.

Initially, more than 90% of the payment is going to pay interest and the rest as capital, hence if we make a payment at this time the credit along with capital will decrease and consequently the accrued interest we pay the bank is going to be less.

The prepayments to the mortgage credit can be used for two options: shorten the term or decrease the monthly payment and to maintain the term. However, according to the financial situation of the family, one needs to take the decision.

If you do not have liquidity problems, it's suggested to reduce the term of the credit and to leave the commitment as soon as possible, but if they have liquidity problems it is suggested to decrease the amount of monthly payment amount, it should be noted that the savings in both cases is similar. Hence it is advisable to increase that monthly amount to obtain better savings.

--Shailaja K