Your friend has a conventional fixed rate mortgage and anticipates having income problems in the future. Fortunately, your friend does have a significant amount of cash saved up. Your friend tells you that in order to lower his future mortgage payments, he is going to use his cash savings to pay down the mortgage principal balance. What should you tell your friend? That's not going to work, because your payment amount will remain the same. You'll just have fewer total payments to make. That's not going to work as well as you think, because your payments remain the same in any given year and only reset annually. Therefore, you'll have to wait a few months for your savings to begin. That's not going to lower your monthly payment amount, but this prepayment will help lower your income tax burden this year. Great plan, that will help make your monthly payments lower. Olo Great plan, and this extra payment of principal will help lower your income tax burden this year