How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Chris The Lawyer Your Own Question
Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22307
Experience:  37 years qualified as a lawyer; LLB, MMgt and FAMINZ.
32702153
Type Your New Zealand Law Question Here...
Chris The Lawyer is online now
A new question is answered every 9 seconds

Is it better to pay the principle first on a mortgage loan

Customer Question

Is it better to pay the principle first on a mortgage loan or the interest or split it between the two and at what percentage?
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.
That depends on whether you want to pay the mortgage off earlier. If you are an investor you may not want to tie up your capital and repayments of the principal, because of course the payments of principal and not tax-deductible like the interest. If you are a homeowner, then you may want to pay off the principal as soon as you can. You need to make a judgment call as to how quickly you want to pay off the principal to adjust the principal and interest percentage, and of course adjust this in terms of your budget. There is no particular legal advantage either way. It also depends on whether the lender accepts payments of principal other than what they require. For example a bank will typically tell you how much principle you should be paying and spread this over the term of the mortgage. Some banks will let you pay off lump sums of principal as well

Related New Zealand Law Questions