10% Fixed-Rate Mortgage Calculator
Analyze high-interest loan scenarios with this 10% mortgage calculator. Features a break-even refinance timeline and historical comparison data.
Monthly Payment:
Total Interest:
Total Cost:
Refinance Logic
If you refinance to 7% with $5,000 closing costs, you break even in approx. months.
About
Borrowing at a 10% interest rate significantly alters the financial landscape of homeownership compared to lower-rate environments. At this level, the interest component of the monthly payment drastically outweighs principal repayment for the majority of the loan term. This tool is designed for users navigating high-inflation periods or subprime lending scenarios where double-digit rates are the norm.
Understanding the "Break-Even Refinance" point is critical in this bracket. Since 10% loans are often viewed as temporary bridges to better financing, this calculator identifies the exact month where the cost of holding the loan exceeds the potential closing costs of a future refinance. It relies on standard amortization logic but emphasizes the heavy front-loading of interest expenses that characterizes double-digit lending.
Formulas
The monthly payment M is derived using the standard annuity formula:
Where r is the monthly rate (0.10 ÷ 12) and n is the total months.
Reference Data
| Loan Year | Balance Remaining (Standard) | Total Interest Paid | Interest % of Pmt |
|---|---|---|---|
| Year 1 | 99% | $High | ~92% |
| Year 5 | 94% | $Very High | ~88% |
| Year 10 | 84% | $Extreme | ~80% |
| Year 15 | 68% | $Peak | ~67% |
| Year 20 | 45% | $Declining | ~50% |
| Year 25 | 26% | $Low | ~30% |
| Year 30 | 0% | $Final | 0% |