Interest-Only
Calculate your monthly payments for interest-only mortgage loans and see how they adjust once the repayment period begins.
Strategic Insights
Interest-Only (I/O) loans maximize Monthly Cash Flow during the initial period. This is often used by investors or individuals with fluctuating income.
Be prepared for a significant payment increase after Year 10. Since you haven't been paying down principal, the remaining balance must be amortized over a shorter 20-year window.
$3,520.83
Standard: $4,108.44
$4,846.23
Starting Year 11
*During the interest-only period, your loan balance does not decrease. You are not building equity through principal reduction.
Disclosure
This calculator is provided for illustrative purposes only and the results are based on the information you provide. Estimated monthly payments are only an estimate and do not include additional factors such as mortgage insurance, property taxes, or fees. Financial decisions should not be based solely upon the results of this calculator.