40 Year Interest Only Mortgage Calculator

Calculate payments for 40-year interest-only mortgages and see how interest-only payments work.

40 Year Interest Only Calculator
Calculate payments for 40-year interest-only mortgages

Use our mortgage calculator to estimate interest-only payments

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Interest Only Features
  • Lower Initial Payments: Pay only interest
  • No Principal Reduction: Balance stays same
  • Payment Shock: Payments increase later
  • Higher Total Cost: More interest paid
Example: $500,000 Loan at 6%

Interest Only (10 years)

Payment: $2,500/month

Balance: $500,000 (unchanged)

Full Payment (30 years)

Payment: $2,998/month

Total Interest: $579,191

Interest Only: $2,500/month
Interest Only Mortgage Considerations

Payment Shock Risk

When the interest-only period ends, your payment will increase significantly. Make sure you can afford the higher payment before choosing this option.

No Equity Building

During the interest-only period, you're not building equity in your home. You're only paying interest, so your loan balance remains the same.

Higher Total Cost

Interest-only mortgages typically cost more over the life of the loan because you're not reducing the principal during the interest-only period.

Calculate Your Interest Only Payment

Use our mortgage calculator to see how interest-only payments work.

Start Calculating