Interest Only Mortgage Calculator
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The Interest Only Mortgage calculator will help to determine what the amortization schedule will be for an interest only mortgage. The calculator will also help to determine how principal payments made to reduce the mortgage balance will affect the amortization schedule.
Interest Only Mortgage Calculator Overview
An interest only mortgage requires that interest payments are made during a fixed period of time. Interest only mortgages usually have an interest only payment option during the first 1, 3, 5, 7, or 10 years of the mortgage. For example, a 3/1 interest only ARM has a fixed interest rate for the first three years of the mortgage and during the same three-year period only interest payments are required. Since only an interest payment is due, interest only mortgages usually have a lower monthly mortgage payment than mortgages that require principal and interest payments.
