Calculate interest-only mortgage for real estate investments and properties
Enter loan amount, interest rate, interest-only period, and remaining amortization. The calculator shows initial interest-only payments then higher payments when principal begins.
A $500,000 loan at 5.5% with 10-year interest-only period has $2,292/month payments, then jumps to $3,148/month for remaining 20 years.
Investors expecting income growth, those buying property likely to appreciate significantly, or high-net-worth borrowers who prefer to invest extra cash elsewhere.
Payments increase significantly as you begin paying principal. Loan must fully amortize over remaining term, resulting in higher monthly payments.
Yes, most loans allow optional principal payments. This can help avoid payment shock when the amortization period begins.