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MysticLlama MysticLlama is online now
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Join Date: Nov 2003
Location: Seattle
Posts: 1,785
Most of the time it simply reduces the amount of months left in the loan / time at the end.

If it was an interest only, then the payment amount would typically drop based on the principal reduction. Really hard to impossible to get a 30 year IO at this point though.
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Rob
1980 SC - 2011 Tiguan - 2018 Tesla M3P
Old 10-26-2011, 01:34 PM
  Pelican Parts Catalog | Tech Articles | Promos & Specials    Reply With Quote #12 (permalink)