10 Year Interest-Only 5/1 ARM
Here is an example of a 5/1 ARM with a 10 year interest-only period. Homeowners who plan to move within 5 to 10 years may find the flexibility of this mortgage appealing.
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Clicking the Calculate button will show you the amortization schedule for the stable and worst case interest rates. In the worst case, the minimum monthly payment would increase $750 to $1,800 after 5 years and when the mortgage is fully amortized in year 11, the payment would increase again to $2,109. There would be adjustments between 5 and 10 years as well. If rates are stable, the minimum monthly payment would remain unchanged at $1,050 for the first 10 years and in year 11, the payment would increase more than 30% to $1,396.Click on the Calculate button in the form below to generate the results or enter your own information.
Fixed-Rate Interest-Only Mortgages:
30 Year Fixed Interest-Only Mortgage 20 Year Fixed Interest-Only Mortgage
Interest-Only ARMs With Interest-Only Periods Matching Fixed-Rate Period:
Interest-Only 3/1 ARM Interest-Only 5/1 ARM Interest Only 7/1 ARM
Interest-Only 10/1 ARM
Interest-Only ARMs With Interest Only Periods Longer Than Fixed-Rate Period:
3/1 ARM (10 Year Interest-Only Period) 5/1 ARM (10 Year Interest-Only Period)
7/1 ARM (10 Year Interest-Only Period)
