Understanding Our Calculator
Our free interest only mortgage calculator is here to help simplify the process of choosing the best mortgage terms for you. It helps you understand how much an interest only mortgage payment will be so that you can be confident in your choice of mortgage.
Using our calculator could not be easier. You simply need to input your information into each section of the calculator, and press the Calculate Now button. You will then receive a box of information that will display your savings if you choose to go with an interest free mortgage. It is as simple as that!
You will need to input the following information when using the mortgage calculator:
- Loan amount
- Loan term
- Interest rate
If you do not have your mortgage interest rate available to you, or if you are unsure of the rate you will qualify for, enter the average interest rate that is being offered in your area. You could also have your lender pre-approve your loan to get an idea of what interest rate you will pay. This free interest only mortgage calculator makes the process as simple as possible!
How We Help
Purchasing a home and getting a mortgage is going to be one of the most important financial decisions you will ever make. That is why having all of this information available to you is so important. You should know what your choices are when it comes to the type of mortgage you choose. There are so many things you need to consider when choosing a fully amortized loan or an interest only mortgage. You can easily and quickly get an accurate idea of what your payments will look like for either loan option with our free interest only mortgage calculator.
With the different types of mortgages available, it can sometimes be difficult to make a decision as to which one is best for your financial situation. This is where we can help you decide. In addition to our calculator, you will have access to pages of absolutely free mortgage advice prepared by a qualified team of experts to help you understand the different mortgages available to you.
Frequently Asked Questions
Do interest only mortgages still exist?
Yes, interest only mortgages do indeed exist.
Which lenders allow these?
A variety of lenders will allow an interest only loan. Credit unions and banks will often offer these types of mortgages, but not all will allow it. They are also fairly restrictive with regard to their requirements.
How are they useful?
Interest only loans are useful in a variety of ways. The main attraction about these loans is the fact that the monthly payments are significantly lower than on traditional mortgages. They can be more affordable if your income decreases. You will also have less money tied up in a liquid asset.
How are interest rates calculated?
There are standard requirements when it comes to applying for an interest only loan. However, they starting costs for this type of mortgage is going to be much higher. You will also have to pay a fee that will be added to the interest, up to 1/8 of the interest rate.
How often do they change?
Interest only mortgages are locked and do not increase over time. However, your payment will eventually increase once your principal rates begin to kick in.
Is it possible to overpay voluntarily?
Yes, you can overpay your interest only mortgage if you prefer. This will decrease the amount you owe on the loan.
What happens once the interest is paid for?
If you get to the point in which you have paid the balance of the interest, you then have to pay off the principal of the loan. You will not own the home until you have paid off both principal and interest. Ideally, you will begin to include principal payments alongside your interest payments in order to pay the loan off quicker.
