How Are Interest-Only Mortgages Calculated?
Overview Northern California home prices are higher than in most areas of the country. Because of that, so are most mortgage loan balances, which leads some homeowners to choose interest-only loans over fully amortizing loans. Interest-only loans require you to pay only the interest accrued each month. Although the payment is lower, the loan balance stays the same during the interest-only period, making these loans riskier than standard ones. home image by Greg Pickens from Fotolia.com home image by Greg Pickens from Fotolia.com Interest-only loans have lower monthly payments. f1e8d8a8-a956-96f2-cc7b-ab0446574042400300 Step 1 Find your loan specifics, in particular the loan amount and interest rate. If you already have a mortgage, the note contains your loan amount and interest rate. If this is for a new loan, the information is on the quotes you have received. If you are using rates from the Internet, find the 30-year rate. If the site has an option for interest-only, choose it, as mo
