> I was hoping that it would be OK to have the male neutered now as he's incredibly boisterous and is constantly humping my poor 12 year old male mini schnauzer.
> You said it would be better both physically and for his behaviour if I waited until he was at least 18 months old, would it not calm him down now? What negative effects would I see if he was castrated before full maturity?
Tommee has given you some good advice about the physical effects: the other thing to consider is that humping at this age is
completely normal, is to be expected and, almost entirely unrelated to a sexual urge - it's just his age. He will grow out of it. Your breeder could, and should, have warned you that it will happen. Boys go through this phase from as early as 6 months up until around 12 months, in some breeds it starts and finishes early whereas some might get it happening later. No boy ever really misses this stage completely and humping is often just misdirected excitement - they simply have no other way to express it. You see it in bitches too :)
Having two pups of the same age will not be helping and you need to quietly and calmly redirect his attention. You could also try putting him to bed as it may well occur when he is overtired.
If you get him castrated now you simply halt his mental development and he may get stuck at this age forever. Let him mature in his own time and he will grow out of most of his puppy behaviours - including this one. If you get him castrated now you will also make him a target for your entire bitch who will probably start to hump him (if she isn't already). Most good breeders will refuse to home two pups of the same age for a variety of good reasons, including this one: as decisions regarding castration or spaying tend to get made for the owners convenience NOT for the benefit of the dogs.