There are various government-backed refinance programs that are designed to make the home-purchasing process easier for Americans. These programs are ai...More
For the loan amount of $250,000.00, with a term of 5 years and interest rate of 5%, and the $4,717.81 including the additional monthly payment for your interest-only mortgage loan, you will experience interest savings of $0.00. Your average monthly payment with an additional payment will grow to $4,717.81, and your total monthly payments will grow to $283,068.50.
In addition, by increasing your monthly payments, you will enjoy an equity appreciation of ##equityappreciationadditionalpayment##. The amortization schedule gives you a better picture of how your principal (equity) and mortgage balance are impacted by making additional payments to principal during the course of your interest-only loan. This can be a way to still build equity and chip away at your overall balance while only paying on the interest during the first part of your loan.