Interest Only ARM Calculator

Interest only mortgages can provide you with very low monthly payments, however you are not paying off any principal during the interest only period. Use this calculator to examine an interest only mortgage.

Your starting monthly payment is MONTHLY_PI.

Your interest only loan of LOAN_AMOUNT has a starting payment of MONTHLY_PI. Your payment rate remains fixed at MONTHLY_PI for ADJUSTABLE_RATE_FIXED months. After FIXED_YEARS years, your loan payments will increase to fully pay off your loan over the remaining term of ADJUSTABLE_YEARS years. Your highest monthly payment, in this scenario, would be ADJUSTABLE_RATE_HIGHEST.

ADJUSTABLE_PAYMENT_AMTS

**GRAPH**

Mortgage Summary

Mortgage Information
Mortgage amountLOAN_AMOUNT
TermTERM years

Interest only payments at a fixed rate for FIXED_YEARS years. After FIXED_YEARS years, the loan is recast to fully amortize the outstanding balance over the remaining ADJUSTABLE_YEARS year term of the loan.

Starting Interest rateINTEREST_RATE
Starting monthly paymentMONTHLY_PI
Total paymentsTOTAL_OF_PAYMENTS
Total interestINTEREST_PAID
Interest Rate Adjustments
Rate remains fixed forADJUSTABLE_RATE_FIXED months
Months between adjustmentsADJUSTABLE_RATE_FEQ months
Expected adjustmentADJUSTABLE_RATE_INCR
Interest rate cap ADJUSTABLE_RATE_CAP
Maximum payment ADJUSTABLE_RATE_HIGHEST
**GRAPH**

Payment schedule

**REPEATING GROUP**

Interest Only ARM Calculator Definitions

Interest Only Adjustable Rate Mortgage (ARM)
This calculator shows an Interest Only ARM. The length of the loan is 30 years, with the initial interest rate fixed for the interest only payment period. After the fixed interest rate period has passed, the interest rate and payment adjusts at the frequency specified and the loan is recast to fully amortize over the remaining term of the loan.

Interest Only ARM Mortgage Options
ARM TypeMonths Fixed
30 year fixedInterest only payments at a fixed rate for 15 years. After 15 years, the loan is recast to fully amortize the outstanding balance over the remaining 15 year term of the loan.
10/1 ARMInterest only payments at a fixed rate for 10 years. After 10 years, the loan is recast to fully amortize the outstanding balance over the remaining 20 year term of the loan.
7/1 ARMInterest only payments at a fixed rate for 7 years. After 7 years, the loan is recast to fully amortize the outstanding balance over the remaining 23 year term of the loan.
5/1 ARMInterest only payments at a fixed rate for 5 years. After 5 years, the loan is recast to fully amortize the outstanding balance over the remaining 25 year term of the loan.
3/1 ARMInterest only payments at a fixed rate for 3 years. After 3 years, the loan is recast to fully amortize the outstanding balance over the remaining 27 year term of the loan.
Mortgage amount
Original or expected balance for your mortgage.
Starting interest rate
Initial annual interest rate for this mortgage.
Starting monthly payment
Monthly principal and interest payment (PI) based on your beginning balance and starting interest rate.
Total payments
Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal.
Total interest
Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal.
Months rate is fixed
This is the number of months that the interest rate is fixed. After this period, the interest rate will be subject to rate adjustments.
Months between adjustments
The number of payment periods between potential adjustments to your interest rate. The most common is 12 months, which means your payment could change at most once per year.
Expected adjustment
The amount you believe that your mortgage's interest rate will change. This amount will be added to or subtracted from your interest rate.
Interest rate cap
This is the highest interest rate allowed by your mortgage. Your actual interest rate will not be adjusted above this rate.


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