30 year I/O question -Dave?
OK, I am refinancing a 1st and 2nd into a single 30 year fixed rate. I am debating between the 30 year fixed, and the 30 year fixed interest only. I like the flexibility of paying either just interest, or interest plus principle that the I/O gives you. The reset payment of the I/O @ the 10 year mark (where the loan becomes a conventional 20 year @ the same fixed rate) is the same as what we are paying now, which we can afford. My question is this: will that reset payment be lower if I make additional priciple payments, or will it be the amount calculated when the note begins with fewer payments?