Quoted from dluth:Yeah, a huge amount is going into interest early on. This is why I'd direct that $3,500 excess you have each month into the mortgage above your regular payments. It would be handy if you have a redraw facility so that you can take this money out again in an emergency - I'm not sure how your mortgage is structured. But the principle is the same - get that sucker down as quickly as you can!
This is bad advice unless you are paying a high interest rate.
Think about it... you can earn way more than 5% with safe investments. You also can't really touch that money you pay down your mortgage with until the house is sold.
