Interest Only Calculator
Use the calculator below to determine the interest-only mortgage payments based on the specific loan values you enter. Interest-only loans can offer substantial monthly savings compared to traditional fixed-rate mortgages. Therefore, it is vital that you educate yourself about the advantages and potential risks associated with interest-only home loan programs.
What is the Definition of an Interest Only Loan? An Interest-Only mortgage is a unique home financing option that allows borrowers to have the flexibility of making "interest-only" payments for a specified duration of the loan. It is essential to note that the term "interest-only" does not imply that the borrower will not be required to repay the principal amount of the loan. Typically, there is a predetermined term during which the borrower will solely pay the interest. Subsequently, the borrower will need to make payments towards both the interest and the principal. Interest-only mortgages commonly feature a fluctuating interest rate, providing borrowers with the opportunity to benefit from potential market changes.