This calculator estimates your monthly mortgage payment for an interest-only loan. An interest-only loan is a loan in which the borrower pays only interest payments and doesn't pay off any of the loan balance at the beginning of the loan. After the interest-only period, payments are increased to repay the principal fully in the remaining time. The longer the interest-only period lasts, the sharper the monthly payment will jump once the interest-only period ends.
Monthly payments are shown both during and after the initial, interest-only period. This calculator also shows the components of the payment: principal and interest, taxes and insurance, and mortgage insurance when your down payment is less than 20% of the value of the home.
The interest-only loan used in this calculator is assumed to have a fixed rate.