A Calculator

Interest Only Mortgage Compare (Canadian)

Interest Only Mortgage Compare Calculator One strategy to compare several mortgage options is comparing their monthly payments. But this critical financial decision is not supposed to be a flawless one with this single factor analysis. Comparing mortgages on the basis of their interest rate should also be added to your analysis. ACalculator, the professional financial analyzer, is dedicated to lend you a hand with interest rate comparison.
Mortgage amount
The appraised value of this mortgage.
Interest rate
Annual rate of interest on this mortgage.
Mortgage amortization
The term length to pay off the mortgage loan. There are two options in this calculator for amortization. Both the options have a repayment period of 25 years. From these 25 years, the first 5 years are interest only period in case of 5/20 interest only option but has a 10 years of interest only period in case of 10/15 interest only option.
Fees
The amount of charges and costs including prepaid interests. These fees are used for the calculation of Annual Percentage Rate (APR).
Annual percentage rate (APR)
Annual Percentage Rate interprets various fees and charges of different mortgages into a single and standard rate. So, you can gauge and compare whatever number of mortgage options you have with the same standard. No matter if there are higher rates but lower fees or lower rates but higher fees, they will be integrated in common measurements.
Payment type
The frequency of payments in one year to pay off the loan fully. You must select the appropriate one from weekly (exactly 52 payments), accelerated weekly (assuming 4 weeks in a month but 1 additional payments in year), bi-weekly (exactly 26 payments), accelerated bi-weekly (assuming 26 bi-weekly payments and 1 additional monthly equivalent payment), monthly (exactly 12 payments), and semi-monthly (exactly 6 payments), the Interest Only Mortgage Compare to a fully amortized mortgage.
Equivalent monthly payment
This is the frequency of payment converted to equivalent monthly amounts. For loan terms other than monthly payments, the total yearly payment is divided into 12 months to find equivalent monthly payment.
Mortgage payment
Total amount of principal and interest payment compounded semi-annually.