Interest-Only 10/1 ARM
A 10/1 ARM with a 10 year interest only period can be especially attractive to homeowners who plan to sell their home in less than 10 years.
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When you press the Calculate button you'll see that after 10 years the principal balance remains at the original loan amount while $16,125 per year has been paid in interest. At the beginning of year 11 the loan is fully amortized and if the index rate does not change, the minimum monthly principal and interest payment will go up nearly 30% from $1,344 to $1,732. Click on the Calculate button in the form below to see 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)
