Hahaha, that’s no trick…that’s a conventional mortgage. 
???No rich, it’s not. Get a calculator. Do the math. And THEN tell me its the same…On a conventional 30yr, the payment doesn’t go down, even if you add more money to the principle every month your still paying all the interest. And if you add money to the principal every month on a 3o yr. then your payment is even higher. So get your BA II+. do the math and if you would like a longer explanation i’ll be happy to educate you 8)
I was thinking you’re gonna keep socking more and more towards principle as you interest payment drops, just as a normal mortgage would behave. Maybe I’m missing your point.
For all that is written about MTA’s and other option arm indexed programs… they have a place.
One of the biggest advantages is that they get you into the investment property (a larger one) offering increased risk, but greater reward.
They are simpler to understand if you think of them as a shared appreciation type of product, or if you are a stock investor, they are similar to buying on margin.
Another Hybrid of this that we have been pushing recently is wrapping a 30yr with a Heloc that deducts Monthly.
The blended rate is less than the MTA, and where the index is headed, and also achieves a minimum payment effect. Further another advantage is that you are able to fully write off the interest on the 1st mortgage.
In otherwords, you have the fixed rate effect on the majority of the money, without some of the nasty features like a recast…
To clarify what i was saying it’s like this.
Suppose the Principal is $1,000
I/O payment (9%) $ 90
Added Principal $ 20
Total Payment monthly $ 110 (doesn’t change)
1st payment balance on loan: $980 ($20 applied to principal)
Next month your I/O payment is $88.2 or (9% of 980)
So your next payment of $110 adds $21.8 to the principal
New balance on loan is 958.2 (980-21.8)
3rd month your I/O payment is 86.23 (9% of 958.2)
$110 payment now adds $23.77 to the principal
New Balance: $934.43 (I/O payment of $84)
4th month $110 payment adds $26 to prinicipal
New balance = $908.43 (New I/O payment $81.75)
And so on and so on…
Hopefully this explains a little better what i was talking about when paying off your house faster.
On normal mortages you pay interest up front. If you ever multiply the payments on a 30yr mortage times 360 months (30 yrs) you’ll see that you’re paying nowhere near that pretty little “interest rate” they gave you. I/O loans use simple interest like what i showed. 30yrs ammortize (think i spelled that right) and basically you get screwed (unless of course you’re the bank 
)
That’s interesting, I always thought that they recalculated based upon the prinipal reduction for a 30 yr… like making double payments.