Based on your loan amount of $250,000.00, interest rate of 5%, term of 30 years, interest-only rate of 4.5%, and interest-only fixed-rate term of 5 years, your interest-only loan payment will be $937.50 per month. The total interest-only amount at the end of your interest-only term will be $56,250.00. Your monthly principal and interest payment at that point will be $1,342.05. The total principal and interest for your loan will be $483,139.50.

During your 5 year interest-only term, you will not pay anything toward principal, unless you make extra principal payments. Your original principal amount of $250,000.00 will remain the same until the end of the 5 year interest-only term. This can give you flexibility to pay less in monthly payments during the 5 year interest-only term, and pay on principal when you desire.