Once you've entered the necessary information into the interest-only mortgage calculator, it’ll provide you with valuable insights into your financial situation, but it’s important to understand the terms used in the result panels. Here is what each means by section.

Cost Difference

The cost difference screen will tell you about the cost difference between an interest-only mortgage and a traditional mortgage, according to the details you’ve entered. The dark blue bar represents the difference. By selecting the chart symbol above the section, you can see this information in a table below the bar chart.

Monthly Payments

The bar chart in this section shows three values:

The monthly payments for the interest-only period on the loan
The monthly payments on the remaining term after the interest-only period is over
The monthly payments on a traditional mortgage

Each bar has three sections marked in navy, dark blue and light blue. The navy blue represents the monthly principal and interest payments. The dark blue represents your private mortgage insurance. And the light blue represents any taxes and/or insurance payments.

Amortization

This screen gives you an estimated payment schedule based on the information you entered for an interest-only mortgage and the payment schedule for a traditional mortgage. This graph shows what you pay monthly, what is accounted for within that monthly payment and how it impacts your total interest and balance. You can use this to gain a more in-depth understanding of your mortgage payments and what it will mean for your financial situation month by month.