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    JFK2SFO's Avatar
    JFK2SFO Posts: 2, Reputation: 1
    New Member
    		  
    #1

    May 29, 2009, 05:27 PM
    How to calculate interest only adjustment?
    Are there any calculators to figure what a mortgage payment will be for principal when a interest only mortgage adjusts? I have 2 years to prepare for the adjustment, but I have no idea what to expect for payments.

    The loan is $419,000 at 6.25%. It's tied to the Libor. Current payment is around $2,300/mo

    Thanks
    Stratmando's Avatar
    Stratmando Posts: 11,188, Reputation: 508
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    #2

    May 29, 2009, 05:40 PM

    The Mortgage Calculator
    Google can provide many more "Mortage Calculators"
    sandkicker's Avatar
    sandkicker Posts: 43, Reputation: 3
    Junior Member
    		  
    #3

    Jun 10, 2009, 01:05 PM

    The real question here, is will the mortgage convert to a "fully amortized" one when the rate adjusts in 2 years? "Rate adjustment" and conversion from "interest only" to "fully amortized" are two separate and distinctly different things.
    JFK2SFO's Avatar
    JFK2SFO Posts: 2, Reputation: 1
    New Member
    		  
    #4

    Jun 10, 2009, 02:03 PM
    It is a 30 year mortgage, adjusts after 5 years. I'm just looking to see what my new payment will be once the principal part kicks in.
    sandkicker's Avatar
    sandkicker Posts: 43, Reputation: 3
    Junior Member
    		  
    #5

    Jun 11, 2009, 04:25 PM

    Most mortgages with an interest only feature are interest only for 10 years. There are ARMs (Adjustable Rate Mortgages) whose rate changes after 5 years. The quick answer to your question should be in you loan package. By Federal Law you should have been provided with at Truth in Lending disclosure. This disclosure features several bits on information. Among them should be a section (below the middle of the page) that goes something like this:
    60 monthly payments of: $www
    Xxx monthly payments of: $yyy
    Zzz monthly payments of: $(whatever)

    The total of 60 plus xxxx plus zzzz months should be 360, i.e.. 30 yrs.
    Neilcathy67's Avatar
    Neilcathy67 Posts: 47, Reputation: 3
    Junior Member
    		  
    #6

    Jun 20, 2009, 08:57 AM

    HP 12C is a mortgage calculator that is easy to use. Of course you will not pay any interest over the next 24 months, but when you do it will be $2579.86 for the next 360 months
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