Your initial interest-only payment is $1,667 per month increasing to $3,163 after 15 years and you will pay $469,371 in interest over the life of the loan. Compare this to a traditional loan amortization with a level monthly payment of $2,147 and total interest of $373,023 which represents a savings of $96,348 . <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Loan Balance' xAxisName='Years' numberPrefix='$' bgColor='FFFFFF' showBorder='1' borderColor='FFFFFF' borderThickness='1' canvasBgColor='ffffff' showAlternateHGridColor='0' plotGradientColor='' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='1' /><category label='' /><category label='' /><category label='4' /><category label='' /><category label='' /><category label='7' /><category label='' /><category label='' /><category label='10' /><category label='' /><category label='' /><category label='13' /><category 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colspan='5' class='sectionCenter'>Interest-Only</th><th colspan='4' class='sectionCenter'>Traditional</th></tr><tr><th scope="col">Year</th><th scope="col">Beginning Balance</th><th scope="col">Interest</th><th scope="col">Payment</th><th scope="col">End Balance</th><th scope="col">Beginning Balance</th><th scope="col">Interest</th><th scope="col">Payment</th><th scope="col">End Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$400,000</td><td>$20,000</td><td>$20,000</td><td>$400,000</td><td>$400,000</td><td>$19,866</td><td>$25,767</td><td>$394,099</td></tr><tr><td role="rowheader" scope="row">2</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>394,099</td><td>19,564</td><td>25,767</td><td>387,895</td></tr><tr><td role="rowheader" scope="row">3</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>387,895</td><td>19,247</td><td>25,767</td><td>381,374</td></tr><tr><td role="rowheader" scope="row">4</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>381,374</td><td>18,913</td><td>25,767</td><td>374,520</td></tr><tr><td role="rowheader" scope="row">5</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>374,520</td><td>18,562</td><td>25,767</td><td>367,315</td></tr><tr><td role="rowheader" scope="row">6</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>367,315</td><td>18,194</td><td>25,767</td><td>359,741</td></tr><tr><td role="rowheader" scope="row">7</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>359,741</td><td>17,806</td><td>25,767</td><td>351,780</td></tr><tr><td role="rowheader" scope="row">8</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>351,780</td><td>17,399</td><td>25,767</td><td>343,412</td></tr><tr><td role="rowheader" scope="row">9</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>343,412</td><td>16,971</td><td>25,767</td><td>334,615</td></tr><tr><td role="rowheader" scope="row">10</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>334,615</td><td>16,521</td><td>25,767</td><td>325,368</td></tr><tr><td role="rowheader" scope="row">11</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>325,368</td><td>16,048</td><td>25,767</td><td>315,648</td></tr><tr><td role="rowheader" scope="row">12</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>315,648</td><td>15,550</td><td>25,767</td><td>305,431</td></tr><tr><td role="rowheader" scope="row">13</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>305,431</td><td>15,028</td><td>25,767</td><td>294,692</td></tr><tr><td role="rowheader" scope="row">14</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>294,692</td><td>14,478</td><td>25,767</td><td>283,402</td></tr><tr><td role="rowheader" scope="row">15</td><td>400,000</td><td>20,000</td><td>20,000</td><td>400,000</td><td>283,402</td><td>13,901</td><td>25,767</td><td>271,536</td></tr><tr><td role="rowheader" scope="row">16</td><td>400,000</td><td>19,583</td><td>37,958</td><td>381,625</td><td>271,536</td><td>13,293</td><td>25,767</td><td>259,062</td></tr><tr><td role="rowheader" scope="row">17</td><td>381,625</td><td>18,643</td><td>37,958</td><td>362,309</td><td>259,062</td><td>12,655</td><td>25,767</td><td>245,950</td></tr><tr><td role="rowheader" scope="row">18</td><td>362,309</td><td>17,654</td><td>37,958</td><td>342,005</td><td>245,950</td><td>11,984</td><td>25,767</td><td>232,167</td></tr><tr><td role="rowheader" scope="row">19</td><td>342,005</td><td>16,616</td><td>37,958</td><td>320,663</td><td>232,167</td><td>11,279</td><td>25,767</td><td>217,678</td></tr><tr><td role="rowheader" scope="row">20</td><td>320,663</td><td>15,524</td><td>37,958</td><td>298,228</td><td>217,678</td><td>10,538</td><td>25,767</td><td>202,449</td></tr><tr><td role="rowheader" scope="row">21</td><td>298,228</td><td>14,376</td><td>37,958</td><td>274,646</td><td>202,449</td><td>9,759</td><td>25,767</td><td>186,441</td></tr><tr><td role="rowheader" scope="row">22</td><td>274,646</td><td>13,169</td><td>37,958</td><td>249,857</td><td>186,441</td><td>8,940</td><td>25,767</td><td>169,613</td></tr><tr><td role="rowheader" scope="row">23</td><td>249,857</td><td>11,901</td><td>37,958</td><td>223,800</td><td>169,613</td><td>8,079</td><td>25,767</td><td>151,924</td></tr><tr><td role="rowheader" scope="row">24</td><td>223,800</td><td>10,568</td><td>37,958</td><td>196,410</td><td>151,924</td><td>7,174</td><td>25,767</td><td>133,331</td></tr><tr><td role="rowheader" scope="row">25</td><td>196,410</td><td>9,167</td><td>37,958</td><td>167,619</td><td>133,331</td><td>6,223</td><td>25,767</td><td>113,786</td></tr><tr><td role="rowheader" scope="row">26</td><td>167,619</td><td>7,694</td><td>37,958</td><td>137,354</td><td>113,786</td><td>5,223</td><td>25,767</td><td>93,242</td></tr><tr><td role="rowheader" scope="row">27</td><td>137,354</td><td>6,145</td><td>37,958</td><td>105,542</td><td>93,242</td><td>4,172</td><td>25,767</td><td>71,646</td></tr><tr><td role="rowheader" scope="row">28</td><td>105,542</td><td>4,518</td><td>37,958</td><td>72,101</td><td>71,646</td><td>3,067</td><td>25,767</td><td>48,945</td></tr><tr><td role="rowheader" scope="row">29</td><td>72,101</td><td>2,807</td><td>37,958</td><td>36,950</td><td>48,945</td><td>1,905</td><td>25,767</td><td>25,083</td></tr><tr><td role="rowheader" scope="row">30</td><td>36,950</td><td>1,008</td><td>37,958</td><td>0</td><td>25,083</td><td>685</td><td>25,767</td><td>0</td></tr></table>