Interest-Only Mortgage Calculator
Calculate interest-only mortgage payments and analyze payment shock scenarios. Understand the costs and risks of interest-only loans before making a decision.
Loan Details
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Years
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Understanding Interest-Only Mortgages
✓ Advantages
- • Lower initial monthly payments
- • More cash flow for other investments
- • Potential tax benefits on interest
- • Flexibility for income fluctuations
⚠ Risks
- • No equity building during IO period
- • Payment shock when IO period ends
- • Higher total interest costs
- • Risk if property values decline