Use our Interest Only vs. Principal & Interest Mortgage Calculator to estimate your monthly mortgage payment as an Interest Only Loan payment and a Principal and Interest Loan payment.
You can input your Loan Amount, estimated Mortgage Interest Rate, Loan Years Amortization (Typically 30 years), and how many years the Interest Only Payment will be fixed for (Typically 1- 10 years), to see how much your Interest Only Payment would be compared to a Fixed Principal and Interest Payment.
What is an Interest Only Home Loan?
When buying a house with an Interest Only home loan, you can pay only the interest owed on your loan each month when you make a mortgage payment. The option to only make interest payments lasts for a fixed term, usually between 2 to 10 years. Since each monthly payment only goes toward the interest, your loan principal balance does not decrease unless you make additional payments toward the principal loan amount. During this time frame, you have the right to pay more than the interest payment if you want. However, if you opt not to pay toward the principal loan amount then the loan balance remains the same.
To determine if an Interest Only Loan in right for you, it’s Best to Contact Us!