About Interest Only Mortgage Calculator
This interest only mortgage calculator lets you specify the length of the interest only period. It will show the amount of the interest only payment and the the total cost of a loan.
The interest-only mortgage is a specific type of mortgage when the first few years only interest is paid, and the body of the debt remains the same. Usually, the period of payment of percents only varies from 3 to 10 years in the US. The interest-only mortgage can be convenient if the borrower can not afford to pay the fully amortized payment for some reasons. For example, this can be helpful for a student who ends his education at a university. Or, such a mortgage can be borrowed by a person expecting a significant inflow of money in the future.
Check out this Wikipedia page if you want more information about an interest-mortgage.
However, this type of mortgage contains potential risks - sometimes fully amortized payment can be an excessive payment after a few years when the interest-only period is over. Our interest only calculator will help you to accurately estimate the payment both periods: during the interest-only period and when you have to pay the whole payment. Use this mortgage calculator and fully amortized payment will not be a surprise for you.
Also, you may find interesting how actually mortgage calculator works and what formulas we use to calculate the payment.
This mortgage calculator has only been designed to give a useful general indication of costs. It's important you always get a specific quote from the lender and double-check the price yourself before acting on the information.