LOANS / PAYMENT RESET
Separate the low interest-only payment from the later principal-and-interest payment required to repay the unchanged balance over the remaining term.
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The first phase pays monthly interest only. The second phase amortizes the original principal over the shorter remaining term, making the payment reset visible.
Interest-only payment = principal x annual rate / 12. The later payment amortizes the unchanged principal.
What you provide
What you receive
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Real products may reset rates, recast balances, capitalize unpaid amounts, or require a balloon payment.
This is an educational planning estimate. Confirm lender, issuer, tax, accounting, and contractual rules with the relevant provider or qualified adviser before acting.