Keyword focus: interest only mortgage calculator
Interest-Only Mortgage Calculator
See how interest-only periods affect cash flow and long-term costs.
Stress-test your IO loan
Model the switch from interest-only to full amortization and plan refinancing milestones.
Interest-only loans lower payments early on but jump when principal amortization kicks in. Use this page to prepare for the reset and evaluate exit plans.
What to review
- Compare interest-only payments to fully amortizing payments after the reset.
- Schedule refinance or sale targets before payments spike.
- Track principal changes if you add optional paydowns during the IO period.
Quick tips
- Know the reset date
- Mark calendars for the month principal payments begin. Update your budget ahead of time.
- Make principal payments anyway
- Optional principal payments during the IO period reduce future payment shock. Enter small extras to see the benefit.
- Plan an exit strategy
- If you expect to sell or refinance, model current appreciation trends to estimate your equity at the reset.
Common questions
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Who offers interest-only loans?
They are common with jumbo or portfolio lenders. Ask about qualification requirements and rate adjustments.
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Can I convert to a fixed payment?
Some loans convert automatically; others require refinancing. Compare both options in the calculator before the IO period ends.
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Are IO loans risky?
They demand discipline. Use the calculator to ensure you can handle the higher payment later or have a refinance plan ready.