What is an interest-only loan? interest-only mortgage is a loan with monthly payments only on the interest of the amount borrowed at a fixed interest rate. The interest-only terms at Capital Fund 1 typically lasts for 6 – 12 Months. Unlike a traditional lender, an interest-only hard money loan will not begin amortizing and you will not start paying the principal and interest for the remainder of the loan term at an adjustable interest rate.
Using an interest-only mortgage payment calculator shows what your monthly mortgage payment would be by factoring in your interest-only loan term, interest rate and loan amount. The result is your estimated interest-only mortgage payment for the interest-only period. The Calculator on the right shows you what your payments would be with a traditional lender.