Mortgage Knowledge Base
An overpayment on a mortgage is a payment made by the borrower that is above the required monthly payment amount. Overpayments can be made on a one-time or ongoing basis, and are applied to the mortgage balance, reducing the total amount of interest paid over the life of the loan.
Making overpayments on a mortgage can be a good way to save money on interest and pay off the loan faster. Many lenders allow borrowers to make overpayments without incurring any penalties, although it’s always a good idea to check with your lender to confirm their policy on overpayments.
