[Lauren M]

Let's say that we took out a $220,000 mortgage. Over the course of two years, the monthly payment pays off 6k (just guessing) and we also put another $30,000 into the principal. How could I make it so that we'd be paying a lower monthly payment after putting in 30k? Would we have to refinance?

[Nicholas H]

that's funny, i just came across the answer to this on this site. check it out!

[WJVV]

You will have to refinance to get the benefit of lower payments

[michiganted]

I think the only option you would have that would facilitate this is to have an interest-only loan that re-casts every single month. Not all interest-only loans do this. Some of them keep your payment the same until the interest-only period ends, while others change the payment to reflect the current principal balance.

But remember that your interst-only rate is going to be higher than a fully amortized loan. Remember that even if your monthly payments don't go down with a fully amortized loan, you are still gaining the benefit of every bit of principal reduction that you do.

[877YouKeep]

I agree an interest only loan that recast every month will be the only one that the payments will adjust, I actually got a good deal through Homebanc that was a 7 year interest only that recast every month. Rental property that I will sell prior to the 7 year mark.