Fixed Rate Mortgage
A fixed rate mortgage has the same interest rate and monthly
payment throughout the term of the mortgage. The payment
is calculated to payoff the mortgage balance at the end
of the term. The most common terms are 15 year and 30
Interest Only Mortgage
An Interest Only mortgage only requires monthly interest
payments. Since you are not paying any principal, this
can lower your monthly payment. However, since your mortgage's
principal balance is not decreased, you will have a balloon
payment at the end of the mortgage's term. Some an Interest
Only mortgages will also be adjustable rate mortgages
(ARM). An Interest Only ARM will often have a period where
the interest rate is fixed, and then it is adjusted annually.
This calculator assumes that the interest rate for your
Interest Only Mortgage remains fixed for the entire term.
Expected balance for your mortgage.
Term in years
The number of years over which you will repay this mortgage.
The most common mortgage terms are 15 years and 30 years.
Please note that for the Interest Only Mortgage you will
have a balloon payment for the entire principal balance
at the end of the loan term.
Annual interest rate for each mortgage type.
A monthly prepayment of principal you would like to apply
to your Interest Only Mortgage balance.
Monthly principal and interest payment (PI) for the Fixed
Rate Mortgage. This is an interest only payment for an
Interest Only ARM.
Information and interactive calculators
are made available to you as self-help tools for your
independent use and are not intended to provide investment
advice. We can not and do not guarantee their applicability
or accuracy in regards to your individual circumstances.
All examples are hypothetical and are for illustrative
purposes. We encourage you to seek personalized advice
from qualified professionals regarding all personal finance