2017 RANKING & REVIEWS
TOP RANKING BEST MORTGAGE INTEREST-ONLY CALCULATORS
2017 Guide: See What Your Interest-Only Mortgage Really Costs with a Mortgage Interest Calculator
Are you finally ready to buy a home? If so, congratulations! Not everyone can say that they own a home. This is an impressive feat, but the hard work is not done yet.
We aren’t just talking about the task of choosing a home, possibly renovating, or actually moving your stuff in, either. The hard work comes before you even step foot in a home or meet with a realtor. It comes when you apply for a mortgage.
If you are going with an interest-only mortgage, chances are that you will need to take some time to compare interest-only mortgages. However, knowing how to calculate mortgage interest on an interest-only loan is no easy task. That is why you need a mortgage interest calculator to help you out.
Award Emblem: Top 6 Best Interest-Only Mortgage Calculators
The trick is finding a calculator for interest-only mortgage rates that meets your needs. There are many readily available, but choosing the right one is important.
When going through the process of looking for an interest-only payment calculator, chances are that you have many questions, including:
- What is an interest-only mortgage?
- Where do you find the best interest-only mortgage calculators?
- What do you look for in an interest-only mortgage calculator?
- What are the best mortgage interest-only calculators?
Throughout this 2017 guide, we will answer the questions you have surrounding interest-only mortgages. We will explain how they work and what to look for in an interest-only mortgage payment calculator. Finally, we will provide a detailed review of the six best mortgage interest-only calculators.
Advisory HQ’s List of the Top 6 Best Mortgage Interest-Only Calculators
List is sorted alphabetically (click any of the interest-only mortgage calculators below to go directly to the detailed review section for that interest-only payment calculator):
Top 6 Best Interest-Only Mortgage Calculators | Brief Comparison & Ranking
Top Mortgage Interest Rate Calculators
# of Inputs
Report & chart comparing regular vs. interest-only mortgage options
Total payments, total interest, chart
Interest-only payment & term, principal + interest payment & term
Monthly interest payment
Interest-only payment, total interest costs, monthly principal + interest payment, total cost of loan
Total payments, total interest, chart
Table: Top 6 Best Mortgage Interest-Only Calculators | Above list is sorted alphabetically
Detailed Overview: What Is an Interest-Only Mortgage?
An interest-only mortgage is a mortgage when you pay only the interest for a fixed period of time. This term usually lasts between 5 and 7 years, at which point you will begin to pay the principal of the loan, along with the interest.
Image Source: ABC Bank
This can make it difficult to calculate mortgage interest, because it is not quite as simple as a normal mortgage. That is because for the beginning interest-only period, the loan amount is actually not decreasing at all. You are only paying interest on the loan and not applying any payments to the principal.
This might seem like a foolish investment option, but there are some advantages that make interest-only mortgages appealing, such as:
- Low monthly payments for the interest-only term
- Ability to afford more home right away
- The monthly payment is entirely tax-deductable during interest-only period
- You can place investments in other places that are offering higher returns
As you can see, there are some reasons why people look for interest-only mortgages. However, there are some risks associated with this, which is why you need to calculate mortgage interest on an interest-only mortgage to see what you will truly be paying.
By using an interest-only mortgage calculator, you can ensure that you are doing the calculations correctly. With many variables to consider when you calculate mortgage interest, an interest-only mortgage payment calculator is a great asset to have. These calculators will not only help your calculations, but you can also use them to compare interest-only mortgages.
Detailed Overview: Features to Consider in an Interest-Only Mortgage Payment Calculator
With so many options for mortgage interest payment calculators, it is important to choose the best one that meets your needs.
There are many variables to consider, such as the type of information generated and the name backing the mortgage interest rate calculator. Some interest-only mortgage calculator brand names are better than others are.
Since there are several banks, financial institutions and financial websites that offer their own version of a mortgage interest-only calculator, consider your options carefully. When looking for a mortgage interest-only payment calculator to compare interest-only mortgages, consider the following:
- User Interface
- Complexity of Calculator
- Number of Inputs
- Type of Information Generated
As you can see, there are many factors to take into consideration when deciding which interest-only mortgage calculator to use. When examining interest-only mortgage rates, or taking the time to compare interest-only mortgages, having the right mortgage interest-only calculator in your toolbox is essential.
Be sure to choose a mortgage interest payment calculator that is easy to use, with clearly defined inputs. Also, be sure that your mortgage interest rate calculator generates the information that you need. Having an interest-only mortgage payment calculator that meets your needs will make comparing mortgages much easier.
Advisory HQ’s Selection Methodology
What methodology does AdvisoryHQ use in selecting and finalizing the credit cards, financial products, firms, services, and products that are ranked on its various top-rated lists?
Please click here “AdvisoryHQ’s Ranking Methodologies” for a detailed review of AdvisoryHQ’s selection methodologies for ranking top-rated credit cards, financial accounts, firms, products, and services.
Detailed Review – Top Ranking Best Mortgage Interest Calculator
Below, please find the detailed review of each mortgage interest-only calculator on our list of interest-only mortgage rates calculators. We have highlighted some of the factors that allowed these mortgage interest payment calculators to score so highly in our selection ranking.
Of all of the interest-only mortgage calculators, the option from ASIC might have the best outputs. This mortgage interest calculator is easy to use and very intuitive with the inputs.
You will simply need to enter the amount borrowed, interest rate, repayment frequency, length of loan, and interest-only period, as well as any monthly fees. The user interface is intuitive, and you can easily understand all of the inputs, which we love.
Perhaps what puts this calculator above those that didn’t make our list of mortgage interest-only calculators is the outputs that are generated.
After you enter the information, the calculator outputs the total cost of an interest-only mortgage, as well as a regular mortgage, along with an amount and chart showing the difference in total costs of each mortgage.
Image Source: ASIC
We love that this mortgage interest calculator can compare options between traditional and interest-only mortgages. The chart displayed, which is shown above, is also very easy to follow and understand.
If you are looking for an easy-to-use mortgage interest calculator, with clearly defined variables and very informative outputs, then ASIC might be the best option for you.
Bankrate starts with a very brief overview of what the calculator will yield. While other interest-only mortgage calculators don’t explain this, Bankrate does.
We also like that Bankrate takes the time to explain every variable that goes into the mortgage interest calculator. Not all mortgage interest-only calculators do this, but it makes the Bankrate calculator easier to understand and use.
Though the user interface seems a bit awkward at first, it is quite simple to enter the five variables needed to generate a result. You will enter mortgage amount, term in years, interest only period, interest rate, and type of amortization into the mortgage interest payment calculator. There is also an option for prepayments if you pay down part of the mortgage upfront.
After entering the information above, like other mortgage interest-only calculators, a result will be generated. This calculator shows the total payments and the total interest being paid, as well as a chart. However, the chart just seems awkward, when two numbers is all it shows.
If you want an easy-to-use interest-only mortgage calculator with very explicitly defined variables, then Bankrate is a good option.
Calculator Soup Review
The Calculator Soup mortgage interest-only calculator is is also simple to use and requires few inputs. You simply need to input the mortgage amount, mortgage term in years or months, annual interest rate, and interest-only term is months or years.
After hitting calculate, this mortgage interest calculator will generate two figures. First, it will display what the interest-only payment is and how long you will pay it. This is nice because it shows you what you will be paying right away.
Next, it will show what payment you will see for principal plus interest, and the term that you will see that for. While this is good for budgeting purposes, or comparing different interest-only mortgages, this is one of the more limited mortgage interest-only calculators out there.
If you are looking for quick and easy mortgage interest-only calculators, then check out Calculator Soup’s option. With only four variables to input, if all you need is monthly costs and terms or to compare different options, this could be a great choice.
Financial Mentor Review
Financial Mentor is also a site that offers interest-only mortgage calculators. When we say this mortgage interest calculator is simple, we mean it.
With just two inputs, you will generate a result. You will need to enter the loan amount and the annual interest rate. From that, the calculator will show what your monthly interest payment will be. Of all of the interest-only mortgage calculators on our list, this is by far the simplest.
This is not a good option if you are looking for more generated numbers, but if you only want to know what your interest payment will be during the interest-only portion of your loan, this could be the right mortgage interest calculator for you.
While this calculator is very simple, the reason it makes our list of top mortgage interest-only calculators is the information contained below the calculator. This site breaks down interest-only loans, whether they’re right for you, the risks involved, and how they work.
This site provides not only a mortgage interest calculator, but also some background information that can help you understand interest-only loans a bit better.
Mortgage Calculator Review
The Mortgage Calculator only needs four inputs to generate results, and it also offers a brief explanation explaining what the tool offers. This simple-to-use mortgage interest calculator is a great option if you are looking for something quick and easy that generates useable numbers.
After entering the loan amount, both interest-only and the loan rate, and length of the mortgage, you can generate results. Like other interest-only mortgage calculators, this calculator offers a few outputs.
You will see the interest-only loan payment, the total interest that will be paid, monthly principal plus interest payments and total cost of the loan. The only drawback is that there is no way to specify the interest-only period, which can range from five to ten years.
Overall, Mortgage Calculator offers an easy-to-use mortgage interest calculator that generates several pieces of useful information. The site also offers some background information, which makes it more informative.
Mortgage Loan Review
If you want a simple-to-use mortgage interest calculator, check out the one offered by Mortgage Loan. The user interface is very simple, and there is a step-by-step guide for how to use their calculator. This is helpful for those who are not familiar with the process or are using it for the first time.
Like most mortgage interest-only calculators, you enter the mortgage amount, loan term, interest-only period, interest rate, and amortization type. The results that are generated are similar to the Bankrate mortgage interest calculator, but we like this user interface a bit more.
After inputting your information, you will see the total cost of the loan, as well as the total interest that you will pay over the course of the loan.
The Mortgage Loan calculator doesn’t have any flashy outputs or graphics, but it is easy to use, with a step-by-step numbered guide to help you through. This is why it makes our list of top interest-only mortgage calculators.
Conclusion – Top 6 Best Interest-Only Mortgage Calculators
Interest-only mortgages can be a great financial strategy, especially if you have better investment opportunities or plan to turn around and sell a house quickly.
The difficult task is choosing the best mortgage interest calculator for your financial situation. Everyone has different preferences and some interest-only mortgage calculators are easier to use than others. This varies by complexity of a calculator, the number of inputs, and whether the variables are clearly defined for you.
Image Source: Credit.com
You don’t want to waste hours struggling over how to use a simple interest-only mortgage calculator, especially when there are several options available to you. With so many options available, consider the following when you are choosing the best mortgage interest calculator to use:
- User interface
- Complexity of calculator
- Number of inputs
- Type of information generated
By taking the time to choose the best interest-only mortgage calculator, you can have a much easier time comparing mortgage options. When it comes to your financial future, finding the best deal can make a large impact.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.