Testimonials

"Being a first time home buyer is a very interesting situation. You hear rumors or what you need to do and what you need to avoid. It's hard to decipher which information is good and which information is just babble. When pairing up with 800775LOAN.com I quickly learned that they are top notch and really understand today's market. In a market that changes every single day with laws, rates, and conditions it's important to have someone that is really on your side. The skilled, trustworthy, and knowledgeable staff at 800775LOAN.com made our home buying experience a breeze. I did not have to stress and worry about the small stuff because I had a team on my side that was willing to do the extra work to get my loan done right. Do yourself a favor like my wife and I did: avoid the scams, the worries, and the possible loss of a deal and get with 800775LOAN.com so you can get into the dream home you have been working so hard for."

- Matt & Christie W.
CA

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Fixed Rate vs. Interest Only Mortgage Calculator

A fixed rate mortgage has the same payment for the entire term of the loan. Use this calculator to compare a fixed rate mortgage to Interest Only Mortgage.

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Definitions

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 years and 30 years.

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 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.

Mortgage amount

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.