What happens with an interest-only loan?
See the interest-only payment, the payment after the interest-only period ends, and the lifetime cost against a fixed loan.
01Loan
±Trade-offs to weigh
Interest-only
- Lower payment early on
- Flexibility for irregular income
Fully amortizing
- Builds equity every month
- No payment jump
- Lower lifetime interest
Neither option is right for everyone. It depends on your timeline, cash and comfort with risk.
≡Schedule once principal payments begin (year 11 on)
240 payments · total interest $337,101
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $27,200 | $9,656 | $390,344 |
| 2 | $26,514 | $10,341 | $380,004 |
| 3 | $25,781 | $11,074 | $368,929 |
| 4 | $24,995 | $11,860 | $357,069 |
| 5 | $24,153 | $12,702 | $344,367 |
| 6 | $23,252 | $13,603 | $330,764 |
| 7 | $22,287 | $14,568 | $316,196 |
| 8 | $21,253 | $15,602 | $300,594 |
| 9 | $20,146 | $16,709 | $283,884 |
| 10 | $18,960 | $17,895 | $265,989 |
| 11 | $17,690 | $19,165 | $246,825 |
| 12 | $16,330 | $20,525 | $226,300 |
| 13 | $14,874 | $21,981 | $204,319 |
| 14 | $13,314 | $23,541 | $180,778 |
| 15 | $11,644 | $25,211 | $155,567 |
| 16 | $9,855 | $27,000 | $128,567 |
| 17 | $7,939 | $28,916 | $99,651 |
| 18 | $5,887 | $30,968 | $68,684 |
| 19 | $3,690 | $33,165 | $35,519 |
| 20 | $1,337 | $35,519 | $0 |
ƒHow this is calculated
- Interest-only payment = loan × rate ÷ 12. When the IO period ends, the full balance amortizes over the months that remain.
- The fixed-rate comparison uses the full term.
Estimates for illustration only. This is not a loan offer, rate quote, or commitment to lend. Results come only from the numbers entered above. Interest rates are examples you supply, not advertised rates, so check current rates before deciding. Fee schedules and limits shown are published figures that can change.
This calculator is being provided for educational purposes only. The results are estimates based on information you provided and may not reflect CrossCountry Mortgage, LLC product terms. The information cannot be used by CrossCountry Mortgage, LLC to determine a customer’s eligibility for a specific product or service.
Austin Gerimonte, NMLS #2277430 · CrossCountry Mortgage, LLC NMLS #3029 · Equal Housing Lender · NMLSConsumerAccess.org