Paying Principal on Interest Only Mortgage

[Anonymous]

I'm wondering how it works if I pay money towards the principal on my interest only mortgage. The mortgage is for $512,000 at 6.5% for a $2773.33 payment (before escrow fees). So for example, if I plunked down $5000 extra towards the principal, would my next payment be calculated as 6.5% of $507,000? Basically I'm just wondering if the payment on an interest only mortgage goes down if you pay down the principal. I know on a traditional mortgage the payment would remain the same each month even if you did pay extra, but I'm thinking I/O might be different.

Thanks for any help with this question!

[Anonymous]

I have heard that it will go down, but it may not be immediate.  I'm by no means an expert.  I'm sure one of the loan experts will be along shortly... 

[DallasLoanGuy]

Payment should go down the very next month

Ask the servicer to be sure.

Remember, you are in an interest only loan.... paying interest as it accrues. If you pay it down, then you accrue less(lower payment next month)

[Anonymous]

That's what I figured, but I wanted to be sure. Thanks Dallas!

[thrasher865]

Unless there's something I don't know, your new payment should be $2746.25