Calculate your payments during the interest-only period and see how much your payment will jump when the loan fully amortizes.
Total Payments
$975,750
Total Interest Paid
$575,750
If you make minimum payments for the first 10 years, you build zero equity from payments. In year 11, your payment will jump by 37.64%% to $2,982. You must be prepared to handle this “payment shock” or refinance/sell before phase 2 begins.