Making extra mortgage principal

[Vik Ari]

How does making an extra say $1000 towards mortgage principal affect the mortgage? For example if I pay an extra $1000 on the 15th, would that reduce the amount of interest I pay next month since my mortgage balance is reduced by $1000? Do I just look at the amort schedule to see what the effect it?

Pls advise thanks

[Pari Thiagasundaram]

@Vic,

I did something called as "Loan recasting". What that means is your interest rate and the maturity date of the loan stays the same. I pay additional principal of say $10K or $20K and the bank would recalculate my new monthly payment. 

In my situation, this reduced my monthly payment and i started having +ve cash flow on one of my property. (I bought this condo in 2005 when i had 0 knowledge on RE and all i needed was a nice new home). 

Dont stop investing in RE after you move to Europe. Share your experience buying/selling properties in that part of the world.

Good luck.