ARM Mortgage Calculator - Adjustable Rate Mortgage Calculator
This ARM mortgage calculator compares an adjustable rate mortgage to a fixed rate mortgage (side-by-side) so you can make a smart loan decision.
It assumes interest rates will be increased on the ARM at the maximum allowed rate providing you with the most conservative outlook. It also includes a printable comparison page with complete amortization schedule for handy reference.
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Adjustable Rate Mortgage Loan
When you see an advertisement in the newspaper where mortgage loan rates are very low, sometimes you would find it hard to believe. These rates are what we call the adjustable rate mortgage (ARM). Loans with an adjustable-rate mortgage payment type usually have low rates only for a short time. The rates of adjustable-rate mortgage are adjusted regularly, usually after the end of the first year. It is termed as an adjustable rate since the rates will vary from time to time depending on the market performance.
If you’re considering buying a house, should you go for a fixed rate mortgage or an adjustable rate mortgage (ARM)? Your decision will largely depend on your financial situation, risk tolerance and economic conditions. To help you in making a decision, find out which type of mortgage payment fits your budget by calculating the maximum monthly payment using the ARM mortgage calculator.
Adjustable Rate Mortgage (ARM)
Finding the most suitable mortgage payment for you can be very challenging. Adjustable rate and fixed rate mortgages has their share of advantages and disadvantages. When researching which one is best for you, understand how your mortgage payment will impact your future plans and choose the mortgage that gives you the lowest cost.
Adjustable rate mortgage (ARM) is not for everyone. Before making a decision, it is essential to do a careful study and do some calculations to find out which option is best for you. Just like any other long-term loan, try to plan for the future. If you are looking at living in the home for a short period of time, the adjustable rate mortgage may be the best for you. But if you are planning to live in the home for a longer period of time, you are probably better off with a fixed rate mortgage.
ARM Terms And Definitions
Mortgage – A loan that is secured by a property.
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