With fixed rate mortgages, your monthly payment (principle and interest) will be the same every month until the loan is paid off.  The term of the loan is most likely amortized over 30, 25, 20, 15, or 10 years.  As the term to pay off the mortgage decreases, the interest rate also decreases.  However, the monthly payment will be higher because the mortgage is paid off faster with larger payments.

The fixed rate mortgage is the most stable options of all the home loans because your interest rate is the same for the entire time of the loan.  If you choose to make bigger payments, or pay down a chunk of the loan’s principle, it will reduce the total amount of the loan but your payments will remain the same.

If you do want to reduce the principle, it is recommended you contact the loan company and let them know.  Your principle loan amount will be reduced, the total interest you pay over the life of the home loan will be reduced, and the home loan will be paid off in less time.  But, your monthly payments will stay the same with the fixed rate mortgage.

see page 83 for an example