[LOCO]

If I have a 165,000 dollar principle balance and I pay say. 20,000 dollars towards said mortgage. Would my payment of 921 a month with escrow change (Go down) due to there being less accrued interest on the principle balance? Or does the payment stay the same with more money going towards the principle balance?

[peapers]

Unless you renegotiate your terms, your payment remains the same. However, you shorten the time you have to pay the balance off.If you are going to make a balloon payment, you might want to renegotiate the terms of your loan. In the early period of the life of your loan, you pay the most interest-to-premium. With a 20K payment, you might be able to negotiate a shorter loan term while making the same per month mortgage payment. So, if you get a 15 year mortgage, you might be able to pay $921, but shorten the length of your loans by 10 or more years. Which will save you tens of thousands of dollars.There are other options also. Like making a bimonthly mortgage payment. Which can pay down your principle at a faster rate.Talk to your mortgage broker and see what options he or she can offer you.Congrats on being able to put aside 20K and making a wise decision regarding your home loan. You're way ahead of the game.