ÿþ<HTML> <HEAD> <TITLE>Fixed Rate Mortgage vs. Interest Only Mortgage</TITLE> <META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso8859-1"> <META NAME="description" CONTENT="Financial Calculators, ©1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net"> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <!-- Financial Calculators, ©1998-2008 KJE Computer Solutions, LLC. 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For more information please see: <A HREF="http://www.dinkytown.net">http://www.dinkytown.net</A> --> <H1>Fixed Rate Mortgage vs. Interest Only Mortgage</H1><P>A fixed rate mortgage has the same payment for the entire term of the loan. Use this calculator to compare a fixed rate mortgage to Interest Only Mortgage. <P><CENTER> <!--[if IE]><object name="calculator" classid="clsid:8AD9C840-044E-11D1-B3E9-00805F499D93" codebase="http://java.sun.com/update/1.6.0/jinstall-6-windows-i586.cab#Version=1,4,0,0" height="380" width="565"><param name="code" value="MortgageArmvsFixed" /><param name="archive" value="dinkytown.jar" /> <P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]--><![if !IE]><P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]></P><![if !IE]><APPLET name="calculator" code="MortgageArmvsFixed.class" align="baseline" WIDTH="565" HEIGHT="380" archive="dinkytown.jar"><![endif]> <PARAM name="MSG_TITLE_LBL" value="Fixed Rate Mortgage vs. Interest Only Mortgage"> <PARAM name="MSG_ARM_IO" value="Interest Only Mortgage"> <PARAM name="INTEREST_RATE1" value="6.00"> <PARAM name="INTEREST_RATE2" value="5.00"> <PARAM name="INTEREST_RATE3" value="5.00"> <PARAM name="MSG_ARM" value="Interest Only"> <PARAM name="MSG_IO" value="Interest Only Mortgage"> <PARAM name="SHOW_INTEREST_ONLY" value="true"> <PARAM name="SHOW_PI_ARM" value="false"> <PARAM name="SHOW_ARM_FIELDS" value="false"> <PARAM name="SHOW_PREPAYMENT" value="true"> <PARAM name="ADJUSTABLE_RATE_CAP2" value="12"> <PARAM name="ADJUSTABLE_RATE_CAP3" value="12"> <PARAM name="ADJUSTABLE_RATE_INCR2" value="0.0"> <PARAM name="ADJUSTABLE_RATE_INCR3" value="0.0"> <PARAM name="ADJUSTABLE_RATE_FEQ2" value="12"> <PARAM name="ADJUSTABLE_RATE_FEQ3" value="12"> <PARAM name="ADJUSTABLE_MONTHS_FIXED2" value="12"> <PARAM name="ADJUSTABLE_MONTHS_FIXED3" value="12"> <PARAM name="TERM" value="30"> <PARAM name="LOAN_AMOUNT" value="100000"> <PARAM name="BORDER_TYPE" value="ROUND"> <!--CUSTOM PARAMETERS--> <PARAM name="TEXT_FOR_REPORT" value="<HTML> <HEAD> <TITLE>Fixed Rate Mortgage vs. Interest Only Mortgage</TITLE> <META HTTP-EQUIV='Content-Type' CONTENT='text/html; charset=iso8859-1'> <META NAME='description' CONTENT='Financial Calculators, &QCPQ;1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net'> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <BODY bgcolor='#FFFFFF' LINK='#003399' VLINK='#666666' BGCOLOR='#FFFFFF'> <CENTER><table border=0 bgcolor='#000000' width=468 cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFDD' border=0 width=468 cellspacing=1 cellpadding=5><tr><td width='100%' align=center valign=middle><DIV class=large>Fixed Rate Mortgage vs. Interest Only Mortgage</DIV></td></tr></table></TD></TR></TABLE></CENTER> <P> <H1>An interest mortgage could save you as much as SAVINGS_IO_MONTH per month.</H1>**GRAPH**<P> <P>A LOAN_AMOUNT fixed rate mortgage with a term of TERM years at INTEREST_RATE0 has a monthly payment of MONTHLY_PI0. An interest only mortgage at INTEREST_RATE2 has a MONTHLY_PI2 monthly payment. This could save you SAVINGS_IO_MONTH per month over a fully amortizing fixed rate mortgage. <P> <CENTER><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=5> <TR BGCOLOR='#CCCCCC'><TH COLSPAN=2>Interest Only Mortgage</TD></TR> <TR><TD><b>Initial savings on monthly payment</b></TD><TD>SAVINGS_IO_MONTH</TD></TR> <TR><TD><b>Payment savings first year</b></TD><TD>SAVINGS_IO_FIRST_YEAR</TD></TR> <TR><TD><b>Payment savings for five years</b></TD><TD>SAVINGS_IO_FIVE_YEAR</TD></TR> </TABLE></TD></TR> </TABLE></CENTER> <P> <CENTER><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=5> <TR BGCOLOR='#CCCCCC'><TD COLSPAN=3><CENTER><B>Results Summary</B></CENTER></TD></TR> <TR><TH colwidth=33%>&NBSP;</TH><TH colwidth=33%>Fixed Rate Mortgage</TH><TH colwidth=33%>Interest Only Mortgage</TH></TR> <TR><TD colwidth=33% ><b>Loan amount</b></TD><TD colwidth=33% >LOAN_AMOUNT</TD><TD colwidth=33% >LOAN_AMOUNT</TD></TR> <TR><TD colwidth=33% ><b>Term</b></TD><TD colwidth=33% >TERM years</TD><TD colwidth=33% >TERM years</TD></TR> <TR><TD colwidth=33% VALIGN=top><b>Interest rate</b></TD><TD colwidth=33% VALIGN=top>INTEREST_RATE0</TD> <!--<TD colwidth=33% VALIGN=top>INTEREST_RATE2<BR>Rate is fixed for ADJUSTABLE_MONTHS_FIXED2 months and then is adjusted by ADJUSTABLE_RATE_INCR2 every ADJUSTABLE_RATE_FEQ2 months, up to a maximum of ADJUSTABLE_RATE_CAP2. The highest rate actually charged was HIGHEST_RATE2.</TD> --> <TD colwidth=33% VALIGN=top>INTEREST_RATE2</TD> </TR> <TR><TD colwidth=33% ><b>Initial monthly payment</b></TD><TD colwidth=33% >MONTHLY_PI0</TD><TD colwidth=33% >MONTHLY_PI2</TD></TR> <TR><TD colspan=4 valign=top><b>First year totals:</TD></TR> <TR><TD colwidth=33% valign=top><B>&NBSP;&NBSP;Interest<BR>&NBSP;&NBSP;Principal<BR>&NBSP;&NBSP;Payments<BR></b></TD> <TD colwidth=33% valign=top>FIRST_YEAR_INTEREST0<BR>FIRST_YEAR_PRINCIPAL0<BR>FIRST_YEAR_TOTAL0</TD><TD colwidth=33% valign=top>FIRST_YEAR_INTEREST2<BR>FIRST_YEAR_PRINCIPAL2<BR>FIRST_YEAR_TOTAL2</TD></TR> <TR><TD colspan=4 valign=top><b>Five year totals:</TD></TR><TD colwidth=33% valign=top><B>&NBSP;&NBSP;Interest<BR>&NBSP;&NBSP;Principal<BR>&NBSP;&NBSP;Payments<BR><BR></b></TD> <TD colwidth=33% valign=top>FIVE_YEAR_INTEREST0<BR>FIVE_YEAR_PRINCIPAL0<BR>FIVE_YEAR_TOTAL0</TD><TD colwidth=33% valign=top>FIVE_YEAR_INTEREST2<BR>FIVE_YEAR_PRINCIPAL2<BR>FIVE_YEAR_TOTAL2</TD></TR> <TR BGCOLOR='#CCCCCC'><TD colwidth=33% BGCOLOR='#CCCCCC'><b>Total interest</b></TD><TD colwidth=33% >TOTAL_INTEREST0</TD><TD colwidth=33% >TOTAL_INTEREST2</TD></TR> <TR BGCOLOR='#CCCCCC'><TD colwidth=33% BGCOLOR='#CCCCCC'><b>Total payments</b></TD><TD colwidth=33% >TOTAL_PAYMENTS0</TD><TD colwidth=33% >TOTAL_PAYMENTS2</TD></TR> <TR BGCOLOR='#CCCCCC'><TD colwidth=33% ><b>Ending balance </b></TD><TD colwidth=33% >ENDING_BALANCE0</TD><TD colwidth=33%>ENDING_BALANCE2</TD></TR> </TABLE></TD></TR> </TABLE></CENTER> <P><DIV class=large>Payment schedule</DIV> <HR SIZE=1> **REPEATING GROUP** <BR> <HR SIZE=1> <CENTER><P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER><br><br> </BODY> </HTML> "> <H1><CENTER>This Financial Calculator requires SUN's Java"! Plug-in. If you see this message you will need to download SUN's Java"! Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing  Install ActiveX Control . </CENTER></H1> <OL> You can also get SUN's Java"! Plug-in here: <A href="http://www.java.com/en/download/download_the_latest.jsp" target=_blank><b>Get the Java"! Plug-in!</b></A> <P>For more information about this Plug-in please visit: <A href="http://www.dinkytown.net/money/sunjvm.html" target=_blank><b>SUN's Java"! Plug-in</b></A> <BR>For more information these financial calculators please visit: <A href="http://www.dinkytown.net" target=_blank><b>Financial Calculators from KJE Computer Solutions, LLC</b></A> </OL><!--[if IE]></OBJECT><![endif]--><![if !IE]></APPLET><![endif]> </CENTER><CENTER><SCRIPT>document.write(showbuttons())</SCRIPT> </CENTER> <H1>Definitions</H1><P><TABLE align='center' WIDTH="95%"><TR><TD><DL><!--DEFN_START--> <DT><B>Fixed Rate Mortgage</B><DD>A fixed rate mortgage has the same interest rate and monthly payment throughout the term of the mortgage. The payment is calculated to payoff the mortgage balance at the end of the term. The most common terms are 15 years and 30 years.<P> <DT><B>Interest Only Mortgage</B><DD>An Interest Only mortgage only requires monthly interest payments. Since you are not paying any principal, this can lower your monthly payment. However, since your mortgage's principal balance is not decreased, you will have a balloon payment at the end of the mortgage's term. Some Interest Only mortgages will also be adjustable rate mortgages (ARM). An Interest Only ARM will often have a period where the interest rate is fixed, and then it is adjusted annually. This calculator assumes that the interest rate for your Interest Only Mortgage remains fixed for the entire term. <P> <DT><B>Mortgage amount</B><DD>Expected balance for your mortgage.<P> <DT><B>Term in years</B><DD>The number of years over which you will repay this mortgage. The most common mortgage terms are 15 years and 30 years. Please note that for the Interest Only Mortgage you will have a balloon payment for the entire principal balance at the end of the loan term.<P> <DT><B>Interest rate</B><DD>Annual interest rate for each mortgage type.<P> <DT><B>Prepayment</B><DD>A monthly prepayment of principal you would like to apply to your Interest Only Mortgage balance. <P> <DT><B>Monthly payment</B><DD>Monthly principal and interest payment (PI) for the Fixed Rate Mortgage. This is an interest only payment for an Interest Only ARM.<!--DEFN_END--></DL></TD></TR></TABLE> <BR> <HR SIZE=1> <CENTER> <P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER> <BR> </BODY> </HTML>