http://disqus.com/people/graham_alton/enFri, 25 Jul 2008 05:50:43 -0000http://blog.garethj.com/2008/07/24/paying-off-that-mortgage/#comment-998191Correct. If you're prepared to do it manually, however, you benefit from a lower mortgage interest rate and a higher savings rate. Overpay on your mortgage each month, saving the remainder. Once the amount of savings you accrue is equal to the remaining balance pay the balance off in full. I'd be interested to do a Braines-style spreadsheet to work out which approach is more beneficial. I suspect it would depend on just how quickly you're capable of paying off the balance though, I would expect there to be a cross-over at some point as to which is most efficient.graham_altonFri, 25 Jul 2008 05:50:43 -0000http://blog.garethj.com/2008/07/24/paying-off-that-mortgage/#comment-991856Nice idea! We do a similar thing, but manually offsetting our savings against our mortgage so effectively our savings ear the interest charged by our mortgage so we're able to concentrate on paying it off. It's much more manual doing it that way though, these properly off-set mortgages are a great idea if you can get one at a decent rate!graham_altonThu, 24 Jul 2008 14:59:46 -0000