Interest-Only Mortgage
Lending & MortgagesA mortgage where you pay only interest for a set period before principal payments begin, resulting in lower initial payments.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding interest-only mortgage helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how interest-only mortgage impacts your specific situation.