An email arrived asking why Real Estate Calculator Suite does not calculate Interest Only loans. It’s a fair question and deserves a full answer. After all, IO loans are relatively popular right now.

First, an interest only loan is as easy to compute as a fixed rate mortgage loan. The computation is simple math.

Second, most of the features in Real Estate Calculator Suite have been added or tweaked as a result of suggestions from customers who use the software. In fact, if you have a suggestion about how one of Wheatworks’ financial calculators can be improved, please share!

In other words, the reason there is no IO Loan Calculator in Real Estate Calculator Suite is not related to difficulty or lack of interest.

The reason Real Estate Calculator Suite does not compute Interest Only loans is because IO loans usually carry too much negative risk for the borrower. When an IO loan is used to squeak into a house with the hope that income will rise to meet the first full payment of interest and principal, the borrower is merely borrowing financial trouble.

From the beginning, the philosphy behind Real Estate Calculator Suite has been to make real estate math easy. Easy also includes being able to live well with the decisions one makes about purchasing a new home. While one part of the American Dream is to own your own home … the other is to sleep well while making the monthly payments!