Your initial interest-only payment is $112 per month increasing to $2,311 after 29 years and you will pay $39,887 in interest over the life of the loan. Compare this to a traditional loan amortization with a level monthly payment of $145 and total interest of $25,179 which represents a savings of $14,708 . <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Loan Balance' xAxisName='Years' numberPrefix='$' 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 label='' /><category label='' /><category label='16' /><category label='' /><category label='' /><category label='19' /><category label='' /><category label='' /><category label='22' /><category label='' /><category label='' /><category label='25' /><category label='' /><category label='' /><category label='28' /><category label='' /><category label='' /></categories><dataset seriesName='Interest-Only'><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='27000.0' /><set value='0.0' /></dataset><dataset seriesName='Traditional'><set value='26602.0' /><set value='26183.0' /><set value='25743.0' /><set value='25280.0' /><set value='24794.0' /><set value='24283.0' /><set value='23745.0' /><set value='23180.0' /><set value='22587.0' /><set value='21962.0' /><set value='21306.0' /><set value='20617.0' /><set value='19892.0' /><set value='19130.0' /><set value='18329.0' /><set value='17487.0' /><set value='16602.0' /><set value='15671.0' /><set value='14693.0' /><set value='13665.0' /><set value='12585.0' /><set value='11449.0' /><set value='10255.0' /><set value='9000.0' /><set value='7681.0' /><set value='6294.0' /><set value='4836.0' /><set value='3304.0' /><set value='1693.0' /><set value='0.0' /></dataset></chart>"); // --> </script> <table class='pure-table pure-table-bordered' role='grid'><tr><th 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>$27,000</td><td>$1,350</td><td>$1,350</td><td>$27,000</td><td>$27,000</td><td>$1,341</td><td>$1,739</td><td>$26,602</td></tr><tr><td role="rowheader" scope="row">2</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>26,602</td><td>1,321</td><td>1,739</td><td>26,183</td></tr><tr><td role="rowheader" scope="row">3</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>26,183</td><td>1,299</td><td>1,739</td><td>25,743</td></tr><tr><td role="rowheader" scope="row">4</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>25,743</td><td>1,277</td><td>1,739</td><td>25,280</td></tr><tr><td role="rowheader" scope="row">5</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>25,280</td><td>1,253</td><td>1,739</td><td>24,794</td></tr><tr><td role="rowheader" scope="row">6</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>24,794</td><td>1,228</td><td>1,739</td><td>24,283</td></tr><tr><td role="rowheader" scope="row">7</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>24,283</td><td>1,202</td><td>1,739</td><td>23,745</td></tr><tr><td role="rowheader" scope="row">8</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>23,745</td><td>1,174</td><td>1,739</td><td>23,180</td></tr><tr><td role="rowheader" scope="row">9</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>23,180</td><td>1,146</td><td>1,739</td><td>22,587</td></tr><tr><td role="rowheader" scope="row">10</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>22,587</td><td>1,115</td><td>1,739</td><td>21,962</td></tr><tr><td role="rowheader" scope="row">11</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>21,962</td><td>1,083</td><td>1,739</td><td>21,306</td></tr><tr><td role="rowheader" scope="row">12</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>21,306</td><td>1,050</td><td>1,739</td><td>20,617</td></tr><tr><td role="rowheader" scope="row">13</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>20,617</td><td>1,014</td><td>1,739</td><td>19,892</td></tr><tr><td role="rowheader" scope="row">14</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>19,892</td><td>977</td><td>1,739</td><td>19,130</td></tr><tr><td role="rowheader" scope="row">15</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>19,130</td><td>938</td><td>1,739</td><td>18,329</td></tr><tr><td role="rowheader" scope="row">16</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>18,329</td><td>897</td><td>1,739</td><td>17,487</td></tr><tr><td role="rowheader" scope="row">17</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>17,487</td><td>854</td><td>1,739</td><td>16,602</td></tr><tr><td role="rowheader" scope="row">18</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>16,602</td><td>809</td><td>1,739</td><td>15,671</td></tr><tr><td role="rowheader" scope="row">19</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>15,671</td><td>761</td><td>1,739</td><td>14,693</td></tr><tr><td role="rowheader" scope="row">20</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>14,693</td><td>711</td><td>1,739</td><td>13,665</td></tr><tr><td role="rowheader" scope="row">21</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>13,665</td><td>659</td><td>1,739</td><td>12,585</td></tr><tr><td role="rowheader" scope="row">22</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>12,585</td><td>603</td><td>1,739</td><td>11,449</td></tr><tr><td role="rowheader" scope="row">23</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>11,449</td><td>545</td><td>1,739</td><td>10,255</td></tr><tr><td role="rowheader" scope="row">24</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>10,255</td><td>484</td><td>1,739</td><td>9,000</td></tr><tr><td role="rowheader" scope="row">25</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>9,000</td><td>420</td><td>1,739</td><td>7,681</td></tr><tr><td role="rowheader" scope="row">26</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>7,681</td><td>353</td><td>1,739</td><td>6,294</td></tr><tr><td role="rowheader" scope="row">27</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>6,294</td><td>282</td><td>1,739</td><td>4,836</td></tr><tr><td role="rowheader" scope="row">28</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>4,836</td><td>207</td><td>1,739</td><td>3,304</td></tr><tr><td role="rowheader" scope="row">29</td><td>27,000</td><td>1,350</td><td>1,350</td><td>27,000</td><td>3,304</td><td>129</td><td>1,739</td><td>1,693</td></tr><tr><td role="rowheader" scope="row">30</td><td>27,000</td><td>737</td><td>27,737</td><td>0</td><td>1,693</td><td>46</td><td>1,739</td><td>0</td></tr></table>