Interest-Only 3/1 ARM
Here we look at a 3/1 ARM with an interest only period that matches the 3 year fixed period.
| Related Articles |
|---|
| » Refinancing to a Fixed Mortgage |
| » Interest-Only Mortgage Advice |
Assuming that the index rate remains unchanged throughout the life of the mortgage, when you press the Calculate button you'll see that after 3 years that the principal balance remains at the original loan amount and more than $12,000 per year has been paid in interest. At the beginning of year 4 the loan is fully amortized and the minimum monthly payment increases by $211 or 21%. 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)
