Loans: Payment interest only

What are the monthly payments on a $150000 interest only 20-year mortgage at an interest rate of 9%?

The monthly payments don't go towards the principal.

First, calculate the effective interest rate: standard US mortgages are stated as a nominal annual interest rate, which is compounded monthly.
The effective length of the loan is 30 years (360 months). Therefore, the effective interest rate is 0.09/12.

$150,000*0.09/12 = $1,125

$1,125 per month.

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License