Interest Only Mortgage Calculator is an online personal finance estimation tool to calculate how much intrerst you need to pay on your mortgage. The principal amount, interest rate and total time period to pay back are the key terms used to calculate the interest repayment each month for specific period of time.
In traditional mortgage requires the borrower to make payment of part of the Principal as borrowed and the Interest on that money for each month. The principal you owe on your mortgage decreases over the term of the loan. Interest only mortgages are quite popular. An Interest-Only Mortgage Loan is a loan for which the borrower pays only the interest on the capital for a specified number of years, there is no amount that goes to pay off the principal. The Principal remains same. At the end of the loan term, the borrower has the options of renewing the interest-only loan, repaying the capital, or converting the loan in to a regular principal and interest payment loan according to terms between borrower and money lending services. When you opt for these special kinds of mortgages, you need to calculate the monthly interest payment and total interest payment. In order that this interest only mortgage calculator not only comes into play to calculate the above said factors and also assist you to compare different mortgage lenders options and let you determine which mortgage provider provides you the best deal in the finance market.