Hi I have a mortgage that is split into two.
Let's say 60k at 3.99% and 60K at 2.5%.
I looked at the split of my monthly payment and found that they were fairly equal. I asked them to change this so I paid the more expensive debt first.
To do this they increased the term on the cheaper 2.5% which is now 37yrs and reduced the term on the 3.99% to 14yrs.
So now I pay a larger portion of my total monthly payment to the more expensive debt whilst still paying the same total that I did before.
Is there an idustry term for this?
Let's say 60k at 3.99% and 60K at 2.5%.
I looked at the split of my monthly payment and found that they were fairly equal. I asked them to change this so I paid the more expensive debt first.
To do this they increased the term on the cheaper 2.5% which is now 37yrs and reduced the term on the 3.99% to 14yrs.
So now I pay a larger portion of my total monthly payment to the more expensive debt whilst still paying the same total that I did before.
Is there an idustry term for this?