I have a 30 yr fixed rate pick a pay mortgage. If you only make the interest only payment for the first 10 yrs will the balance on the loan increase or remain the same?
If you are able to make only the interest only payments on a “pick your payment” mortgage, your loan principal should not increase, regardless of how long you make the interest only payments. However, you mortgage balance will not decrease either; you will only be making the lowest payment amount possible while preventing your mortgage balance from growing. With an interest only payment, you are paying the accrued interest each month, so your balance will not increase, but you will not be making any progress toward paying off the principal of your loan.
If you can only afford the interest-only payment on your current mortgage, you may want to consider a refinance loan with better terms, which could allow you to repay your loan sooner. To learn more about mortgages and refinance loans, I encourage you to visit the Bills.com Mortgage Resources page at http://www.bills.com/mortgage/
If you enter your contact information in the Bills.com Savings Center at the top of the page, we can have several pre-screened refinance lenders contact you to discuss the loan options available to you based on your current financial circumstances.
I wish you the best luck in your financial endeavors, and hope that the information I have provided helps you Find. Learn. Save.