You are leaving the nbkc bank website and will be linked to an external website

You are about to link to an external website. nbkc bank is not responsible for the availability of content and does not represent either the linked website or you, should you enter into a transaction. We encourage you to review the privacy and security policies for any hyperlinked site which may differ from nbkc bank.

Fixed Rate Mortgage vs. Interest Only Mortgage

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.

By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.




Financial Calculators from
Dinkytown.net

Financial Calculators ©1998-2025 KJE Computer Solutions, Inc.









*indicates required.
Report amortization:
Report amortization
**FIG_GRAPHTITLE** Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Definitions

Fixed Rate Mortgage

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.

Interest Only Mortgage

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.

Mortgage amount

Expected balance for your mortgage.

Term in years

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.

Interest rate

Annual interest rate for each mortgage type.

Prepayment

A monthly prepayment of principal you would like to apply to your Interest Only Mortgage balance.

Monthly payment

Monthly principal and interest payment (PI) for the Fixed Rate Mortgage. This is an interest only payment for an Interest Only ARM.


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.

Apply now

Get a competitive rate.

Check out our latest, most competitive home loan rates.

Talk to a real person.

Got questions? Want to talk? Just reach out.

You’re looking at an award-winning bank

4.9 out of 5 average customer rating!
Based on 22,000+ Customer Reviews

A+ Rating

850+ Reviews

4.8 of 5

6000+ Reviews

4.9 of 5

12,000+ Reviews

4.8 of 5

390+ Reviews