Your initial interest-only payment is $1,875 per month increasing to $2,491 after 1 years and you will pay $409,504 in interest over the life of the loan. Compare this to a traditional loan amortization with a level monthly payment of $2,452 and total interest of $403,251 which represents a savings of $6,253 . <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Loan Balance' xAxisName='Years' numberPrefix='$' 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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value='83117.0' /><set value='56781.0' /><set value='29099.0' /><set value='0.0' /></dataset><dataset seriesName='Traditional'><set value='442917.0' /><set value='435471.0' /><set value='427644.0' /><set value='419417.0' /><set value='410769.0' /><set value='401679.0' /><set value='392123.0' /><set value='382079.0' /><set value='371521.0' /><set value='360422.0' /><set value='348756.0' /><set value='336493.0' /><set value='323602.0' /><set value='310052.0' /><set value='295809.0' /><set value='280837.0' /><set value='265099.0' /><set value='248555.0' /><set value='231166.0' /><set value='212886.0' /><set value='193672.0' /><set value='173474.0' /><set value='152244.0' /><set value='129926.0' /><set value='106468.0' /><set value='81808.0' /><set value='55888.0' /><set value='28641.0' /><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>$450,000</td><td>$22,500</td><td>$22,500</td><td>$450,000</td><td>$450,000</td><td>$22,339</td><td>$29,422</td><td>$442,917</td></tr><tr><td role="rowheader" scope="row">2</td><td>450,000</td><td>22,328</td><td>29,893</td><td>442,435</td><td>442,917</td><td>21,977</td><td>29,422</td><td>435,471</td></tr><tr><td role="rowheader" scope="row">3</td><td>442,435</td><td>21,941</td><td>29,893</td><td>434,483</td><td>435,471</td><td>21,596</td><td>29,422</td><td>427,644</td></tr><tr><td role="rowheader" scope="row">4</td><td>434,483</td><td>21,534</td><td>29,893</td><td>426,125</td><td>427,644</td><td>21,195</td><td>29,422</td><td>419,417</td></tr><tr><td role="rowheader" scope="row">5</td><td>426,125</td><td>21,107</td><td>29,893</td><td>417,338</td><td>419,417</td><td>20,774</td><td>29,422</td><td>410,769</td></tr><tr><td role="rowheader" scope="row">6</td><td>417,338</td><td>20,657</td><td>29,893</td><td>408,103</td><td>410,769</td><td>20,332</td><td>29,422</td><td>401,679</td></tr><tr><td role="rowheader" scope="row">7</td><td>408,103</td><td>20,185</td><td>29,893</td><td>398,394</td><td>401,679</td><td>19,867</td><td>29,422</td><td>392,123</td></tr><tr><td role="rowheader" scope="row">8</td><td>398,394</td><td>19,688</td><td>29,893</td><td>388,189</td><td>392,123</td><td>19,378</td><td>29,422</td><td>382,079</td></tr><tr><td role="rowheader" scope="row">9</td><td>388,189</td><td>19,166</td><td>29,893</td><td>377,462</td><td>382,079</td><td>18,864</td><td>29,422</td><td>371,521</td></tr><tr><td role="rowheader" scope="row">10</td><td>377,462</td><td>18,617</td><td>29,893</td><td>366,186</td><td>371,521</td><td>18,324</td><td>29,422</td><td>360,422</td></tr><tr><td role="rowheader" scope="row">11</td><td>366,186</td><td>18,040</td><td>29,893</td><td>354,333</td><td>360,422</td><td>17,756</td><td>29,422</td><td>348,756</td></tr><tr><td role="rowheader" scope="row">12</td><td>354,333</td><td>17,434</td><td>29,893</td><td>341,874</td><td>348,756</td><td>17,159</td><td>29,422</td><td>336,493</td></tr><tr><td role="rowheader" scope="row">13</td><td>341,874</td><td>16,796</td><td>29,893</td><td>328,777</td><td>336,493</td><td>16,532</td><td>29,422</td><td>323,602</td></tr><tr><td role="rowheader" scope="row">14</td><td>328,777</td><td>16,126</td><td>29,893</td><td>315,010</td><td>323,602</td><td>15,872</td><td>29,422</td><td>310,052</td></tr><tr><td role="rowheader" scope="row">15</td><td>315,010</td><td>15,422</td><td>29,893</td><td>300,539</td><td>310,052</td><td>15,179</td><td>29,422</td><td>295,809</td></tr><tr><td role="rowheader" scope="row">16</td><td>300,539</td><td>14,682</td><td>29,893</td><td>285,328</td><td>295,809</td><td>14,450</td><td>29,422</td><td>280,837</td></tr><tr><td role="rowheader" scope="row">17</td><td>285,328</td><td>13,903</td><td>29,893</td><td>269,338</td><td>280,837</td><td>13,684</td><td>29,422</td><td>265,099</td></tr><tr><td role="rowheader" scope="row">18</td><td>269,338</td><td>13,085</td><td>29,893</td><td>252,530</td><td>265,099</td><td>12,879</td><td>29,422</td><td>248,555</td></tr><tr><td role="rowheader" scope="row">19</td><td>252,530</td><td>12,225</td><td>29,893</td><td>234,863</td><td>248,555</td><td>12,033</td><td>29,422</td><td>231,166</td></tr><tr><td role="rowheader" scope="row">20</td><td>234,863</td><td>11,321</td><td>29,893</td><td>216,291</td><td>231,166</td><td>11,143</td><td>29,422</td><td>212,886</td></tr><tr><td role="rowheader" scope="row">21</td><td>216,291</td><td>10,371</td><td>29,893</td><td>196,769</td><td>212,886</td><td>10,208</td><td>29,422</td><td>193,672</td></tr><tr><td role="rowheader" scope="row">22</td><td>196,769</td><td>9,372</td><td>29,893</td><td>176,249</td><td>193,672</td><td>9,225</td><td>29,422</td><td>173,474</td></tr><tr><td role="rowheader" scope="row">23</td><td>176,249</td><td>8,323</td><td>29,893</td><td>154,678</td><td>173,474</td><td>8,192</td><td>29,422</td><td>152,244</td></tr><tr><td role="rowheader" scope="row">24</td><td>154,678</td><td>7,219</td><td>29,893</td><td>132,004</td><td>152,244</td><td>7,105</td><td>29,422</td><td>129,926</td></tr><tr><td role="rowheader" scope="row">25</td><td>132,004</td><td>6,059</td><td>29,893</td><td>108,170</td><td>129,926</td><td>5,964</td><td>29,422</td><td>106,468</td></tr><tr><td role="rowheader" scope="row">26</td><td>108,170</td><td>4,840</td><td>29,893</td><td>83,117</td><td>106,468</td><td>4,763</td><td>29,422</td><td>81,808</td></tr><tr><td role="rowheader" scope="row">27</td><td>83,117</td><td>3,558</td><td>29,893</td><td>56,781</td><td>81,808</td><td>3,502</td><td>29,422</td><td>55,888</td></tr><tr><td role="rowheader" scope="row">28</td><td>56,781</td><td>2,210</td><td>29,893</td><td>29,099</td><td>55,888</td><td>2,176</td><td>29,422</td><td>28,641</td></tr><tr><td role="rowheader" scope="row">29</td><td>29,099</td><td>794</td><td>29,893</td><td>0</td><td>28,641</td><td>782</td><td>29,422</td><td>0</td></tr></table>