Your initial interest-only payment is $2,188 per month increasing to $4,152 after 15 years and you will pay $616,050 in interest over the life of the loan. Compare this to a traditional loan amortization with a level monthly payment of $2,818 and total interest of $489,593 which represents a savings of $126,457 . <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Loan Balance' xAxisName='Years' numberPrefix='$' 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>$525,000</td><td>$26,250</td><td>$26,250</td><td>$525,000</td><td>$525,000</td><td>$26,074</td><td>$33,820</td><td>$517,254</td></tr><tr><td role="rowheader" scope="row">2</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>517,254</td><td>25,678</td><td>33,820</td><td>509,112</td></tr><tr><td role="rowheader" scope="row">3</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>509,112</td><td>25,261</td><td>33,820</td><td>500,554</td></tr><tr><td role="rowheader" scope="row">4</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>500,554</td><td>24,823</td><td>33,820</td><td>491,557</td></tr><tr><td role="rowheader" scope="row">5</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>491,557</td><td>24,363</td><td>33,820</td><td>482,101</td></tr><tr><td role="rowheader" scope="row">6</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>482,101</td><td>23,879</td><td>33,820</td><td>472,160</td></tr><tr><td role="rowheader" scope="row">7</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>472,160</td><td>23,371</td><td>33,820</td><td>461,711</td></tr><tr><td role="rowheader" scope="row">8</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>461,711</td><td>22,836</td><td>33,820</td><td>450,728</td></tr><tr><td role="rowheader" scope="row">9</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>450,728</td><td>22,274</td><td>33,820</td><td>439,182</td></tr><tr><td role="rowheader" scope="row">10</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>439,182</td><td>21,683</td><td>33,820</td><td>427,046</td></tr><tr><td role="rowheader" scope="row">11</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>427,046</td><td>21,063</td><td>33,820</td><td>414,289</td></tr><tr><td role="rowheader" scope="row">12</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>414,289</td><td>20,410</td><td>33,820</td><td>400,879</td></tr><tr><td role="rowheader" scope="row">13</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>400,879</td><td>19,724</td><td>33,820</td><td>386,783</td></tr><tr><td role="rowheader" scope="row">14</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>386,783</td><td>19,003</td><td>33,820</td><td>371,966</td></tr><tr><td role="rowheader" scope="row">15</td><td>525,000</td><td>26,250</td><td>26,250</td><td>525,000</td><td>371,966</td><td>18,245</td><td>33,820</td><td>356,391</td></tr><tr><td role="rowheader" scope="row">16</td><td>525,000</td><td>25,702</td><td>49,820</td><td>500,882</td><td>356,391</td><td>17,448</td><td>33,820</td><td>340,018</td></tr><tr><td role="rowheader" scope="row">17</td><td>500,882</td><td>24,468</td><td>49,820</td><td>475,531</td><td>340,018</td><td>16,610</td><td>33,820</td><td>322,809</td></tr><tr><td role="rowheader" scope="row">18</td><td>475,531</td><td>23,171</td><td>49,820</td><td>448,882</td><td>322,809</td><td>15,730</td><td>33,820</td><td>304,719</td></tr><tr><td role="rowheader" scope="row">19</td><td>448,882</td><td>21,808</td><td>49,820</td><td>420,870</td><td>304,719</td><td>14,804</td><td>33,820</td><td>285,703</td></tr><tr><td role="rowheader" scope="row">20</td><td>420,870</td><td>20,375</td><td>49,820</td><td>391,425</td><td>285,703</td><td>13,831</td><td>33,820</td><td>265,714</td></tr><tr><td role="rowheader" scope="row">21</td><td>391,425</td><td>18,868</td><td>49,820</td><td>360,473</td><td>265,714</td><td>12,809</td><td>33,820</td><td>244,703</td></tr><tr><td role="rowheader" scope="row">22</td><td>360,473</td><td>17,285</td><td>49,820</td><td>327,938</td><td>244,703</td><td>11,734</td><td>33,820</td><td>222,617</td></tr><tr><td role="rowheader" scope="row">23</td><td>327,938</td><td>15,620</td><td>49,820</td><td>293,738</td><td>222,617</td><td>10,604</td><td>33,820</td><td>199,401</td></tr><tr><td role="rowheader" scope="row">24</td><td>293,738</td><td>13,870</td><td>49,820</td><td>257,789</td><td>199,401</td><td>9,416</td><td>33,820</td><td>174,997</td></tr><tr><td role="rowheader" scope="row">25</td><td>257,789</td><td>12,031</td><td>49,820</td><td>220,000</td><td>174,997</td><td>8,167</td><td>33,820</td><td>149,344</td></tr><tr><td role="rowheader" scope="row">26</td><td>220,000</td><td>10,098</td><td>49,820</td><td>180,278</td><td>149,344</td><td>6,855</td><td>33,820</td><td>122,380</td></tr><tr><td role="rowheader" scope="row">27</td><td>180,278</td><td>8,066</td><td>49,820</td><td>138,523</td><td>122,380</td><td>5,475</td><td>33,820</td><td>94,035</td></tr><tr><td role="rowheader" scope="row">28</td><td>138,523</td><td>5,929</td><td>49,820</td><td>94,633</td><td>94,035</td><td>4,025</td><td>33,820</td><td>64,240</td></tr><tr><td role="rowheader" scope="row">29</td><td>94,633</td><td>3,684</td><td>49,820</td><td>48,497</td><td>64,240</td><td>2,501</td><td>33,820</td><td>32,921</td></tr><tr><td role="rowheader" scope="row">30</td><td>48,497</td><td>1,323</td><td>49,820</td><td>0</td><td>32,921</td><td>898</td><td>33,820</td><td>0</td></tr></table>