Posted on: 15th Jul, 2009 10:56 am
I was wondering. if I have a 30 year fixed mortgage with a minim payment of let's say $ 1000, paying more than that every month will reduce also my minimum payment over the months like an auto loan or will only let me repay early?
No. Your minimum payment will not be reduced. You will only be applying more to the principle.
Your payment will be reduced if your mortgage is an Interest Only loan. If you loan is a traditional 30yr. Fixed then you will be just reducing the principle and the payoff, the monthly payment will staty the same.