How much will my loan payments be?
Because interest-only mortgages are initially based on only the interest of the total loan amount, payments for your first few years will be lower than a traditional mortgage. During this period, you can invest that savings elsewhere, apply it to other expenses, or use it for fixing up your home.
Once the interest-only period is over, your payments will increase to include both the interest and principal. At that time, you might consider refinancing to a fixed-rate mortgage to keep your payment increase more manageable.
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Interest-only mortgages can work well for people who are expecting an increase in future income, or who are looking to invest some of their current money elsewhere. Try our interest-only mortgage calculator or contact BBVA to discuss what your specific payments might be based on the loan you qualify for.
To determine your total monthly payment, enter your prospective mortgage loan details, including purchase price, down payment, term, interest-only period, and interest rate. Your interest rate will be determined by your mortgage broker, but if you aren’t yet to this step, you can find current rates here.
If you want a more accurate snapshot of your monthly payment, enter your average yearly property tax and homeowner’s insurance payment. To find property taxes, check MLS listings online, or contact your county’s assessor/recorder’s office or a local real estate agent. Calculate homeowner’s insurance, or contact an insurance agent for a quote.
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