Should I overpay on my mortgage if it is allowed?
I would say yes.
I think this is always a good thing to do if you can.I know that you can find some online calculators that would show you how much you could save by increasing the frequency of your payments and also by making a lump sum or by increasing the amount each payment.Just have all of your mortgage info ready so you can plug in the numbers and away you go.
I checked the calculator that I use on my mortgage company's website and this is what it told me when I said I wanted to add $100.00 extra to my bi-weekly payments;
"""With this comparison you will make $7,700.00 in additional payments during the term of your mortgage.
If you do this you will reduce the full amortization of your mortgage by 17 months, and eliminate 37 payments - this will save you $24,248.46.
After subtracting the extra principal payments made from payments saved, your actual savings are $16,548.46 over the life of your mortgage."""
I think this is a great way to save!
The answer to this question, IMO, depends on where you are on your financial journey.
I agree - it depends on what else you would be doing with that money and your long term plans.