Advanced | Simple | Early Payoff | Refinance | HELOC | Recast | Interest Only | Biweekly | Extra Payments | Free Widget |

**Interest Only Mortgage Calculator** excel to calculate your monthly interest only mortgage payments with a printable interest only amortization schedule by monthly or yearly. The interest only loan calculator calculates initial interest only payments as well as monthly payments after the interest only period is over.

The **interest only loan calculator** excel with amortization will calculate the monthly payment based on mortgage amount, loan terms, interest rate, and the starting payment date.
The interest only calculator will show a printable interest only loan amortization that is downloadable as a PDF. If you need to plug in more information such as the PMI, tax insurance, or any other data, please use the Mortgage Calculator With PMI and extra payment.

The rate for interest rate only loans can change from month to month or it can be fixed for 10 years. The borrower only pays interest on the loan for a term that generally lasts for 5 to 7 years.
At the end of the term, the borrower can either start paying principal on the mortgage or pay off the mortgage by making a lump sum payment or they can choose to refinance their home.
This **mortgage calculator for interest only loans** calculates the initial interest only mortgage payments and monthly mortgage payments including principal after the interest only period term.

An interest only mortgage is a mortgage that gives a borrower the option to make only interest payments for a certain period before the regular payments start to kick in. The interest only period could be anywhere from 5 to 10 years on a 30-year term. When the initial interest only period ends, the interest rate for the loan becomes adjustable which means the interest rate varies each year. On a conventional mortgage, the monthly payments consist of two parts, the interest, and the principal. Since an interest only mortgage allows a borrower to pay only the interest for the first several years, the monthly payment is smaller than a conventional mortgage. This type of interest only loan is attractive to those who can't afford large monthly payments, but borrowers end up paying much more for the life of the loan. When the interest only period ended, many borrowers got into trouble because the monthly payments increased as they now are required to pay the principal on top of the interest payment, and their interest rate could go up since it is adjustable after the initial interest only period is over.

Following is a list of the pros and cons of an interest only mortgage.
**Pros**

**Lower Monthly Payment**- The monthly payments are lower in the interest only period since the borrower is only required to make interest payments.**Afford To Buy a House**- Interest only mortgage helps some borrowers buy a house that they couldn't afford otherwise.**Lower Rates Initially**- The initial rate for interest only mortgage are generally lower than a fixed-rate mortgage since they are adjustable after the interest only period ended.**More Cash Flow**- Since borrowers are only required to make interest payments each month, they will have more cash in their pockets for other use.

**No Equity in Your Home**- Since you are not making principal payment, you are not building equity in your home.**Increase Monthly Payment**- After the interest only period, your monthly payments will be much larger since you are now required to make principal payments in addition to the interest payments.**Interest Rate Going Up**- Since the interest rate will become adjustable after the interest only period, it could go up substantially, and a borrower might not be able to repay the loan.**Balloon Payment**- Some interest only loan requires a big lump sum payment or balloon payment at the end of the loan term.

The requirement for an interest only mortgage is generally stricter than conventional mortgages because they are riskier for lenders. The lender may require the borrower to have a higher credit score, a bigger down payment, and lower debt to income ratio. The banks want to make certain that they can get their money back plus interest.

We do not recommend interest only mortgages for most people as they are way riskier than a fixed-interest loan. Some people use interest-only mortgages for investment purposes, to buy houses that they otherwise couldn't afford, expecting the housing market to go up. While houses do appreciate over time, recessions happen. During the housing bubble of 2008, many people lost their homes because they couldn't afford mortgage payments. Think twice if you are really thinking of getting an interest only mortgage, use our interest only mortgage calculator to calculate the costs and the monthly payments. Please note, our interest only loan calculator does not take into account the adjustable rate.

VA Loan Calculator

USDA Loan Mortgage Calculator

Simple Mortgage Calculator

PITI Mortgage Calculator

ARM Mortgage Calculator

Interest Only Mortgage Calculator

Balloon Mortgage Calculator

Mortgage Points Calculator

Second Mortgage Calculator

Cash Out Refinance Calculator

Refinance Break Even Calculator

Refinancing Closing Costs Calculator

Mortgage Recast Calculator

Biweekly Mortgage Calculator with Extra Payments

Mortgage Calculator With Extra Payments

Mortgage Prepayment Calculator

Mortgage Payoff Calculator

Mortgage Comparison Calculator

15 Year vs. 30 Year Mortgage Calculator

Investment Property Calculator

Home Improvement Loan Calculator

Home Sale Net Proceeds Calculator

Closing Costs Calculator

Construction Loan Calculator

Home Appreciation Calculator

Real Estate Commission Calculator

Commercial Real Estate Commission Calculator

BRRRR Calculator

Hard Money Loan Calculator

70% Rule Calculator

Interest Rate Calculator

APR Calculator

Property Tax Calculator

Down Payment Calculator

Mortgage Affordability Calculator

Mortgage Balance Calculator

Mortgage Points Break Even Calculator

Jumbo Mortgage Calculator

Mortgage Calculator App

Monthly Mortgage Payment Calculator

Reverse Mortgage Calculator

How Much House Can I Afford

HELOC Calculator

HELOC Payoff Calculator

HELOC Payment Calculator

PMI Removal Calculator

Mortgage Insurance Calculator

Amortization Schedule With Irregular Payments

15 Year Mortgage Calculator

30 Year Mortgage Calculator

Condo Mortgage Calculator

Weekly Mortgage Calculator

Mortgage Calculator Canada

Mortgage Calculator UK

Mortgage Calculator By State

Refinance Savings Calculator

Auto Loan Payoff Calculator

Auto Loan Calculator with Trade in

Auto Refinance Calculator

RV Loan Calculator

Motorcycle Loan Calculator

Car Lease Calculator

Car Depreciation Calculator

LTV Calculator Auto

Reverse Auto Loan Calculator

How Much Car Can I Afford

Amortization Schedule Excel

Amortization Schedule With Extra Payments

LTV Calculator

Debt To Income Ratio Calculator

Debt Payoff Calculator

How Much Rent Can I Afford

Boat Loan Calculator

Student Loan Calculator

Student Loan Payoff Calculator

Student Loan Refinancing Calculator

Personal Loan Calculator

Personal Loan Payoff Calculator

Personal Loan Refinance Calculator

Land Loan Calculator

Loan Payoff Calculator

Loan Calculator Excel

Reverse Loan Calculator

Lump Sum Payment Calculator

Airbnb Calculator

Credit Card Payoff Calculator

Credit Card Minimum Payment Calculator

Credit Card Interest Calculator

Multiple Credit Card Payoff Calculator

How to Improve Credit Score

What Percent Do Real Estate Agents Make

Mortgage Calculator | Terms | Privacy | Disclaimer | Contact

©2022 **Mortgage Calculator Excel**