300,000 sale price putting down 100k 10 year interest only then 20 year pay off fixed interest rate for 30 years 6.625 (no origination) payment interest only would be $1,108 30 year payment is $1,280.62

One additional advantage of the interest only, you can make a payment ahead and due to the way that they calculate interest you will not have the money but for 20 days instead of 30 which does not effect your payment, but forces the mortgage company to apply a portion of your interest only payment to principal. I have a friend of mine that has been in the mortgage business for multiple years who turned me onto this, he believes his effective interest rate on a 5% loan is somewhere closer to 3.

300,000 sale price putting down 100k fixed interest rate for 30 years 5.75% (no origination) principal and interest only $1,167.15