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.
If this ARM mortgage calculator helped you then please give us a "like" or +1. Thanks!
Adjustable-Rate Mortgages Vs. Fixed-Rate Mortgages
Everyone wants a low interest rate.
Some interest rates, though, seem too good to be true.
If you’re skeptical about certain advertised interest rates, it’s smart to follow through on your gut feeling and dig deeper into the terms of the loan. You might find that those low interest rate loans are adjustable-rate mortgages.
But adjustable-rate mortgages (ARMs) have their pros and cons, so how do you know which type of loan is right for you?
Compare ARMs side-by-side with fixed-rate mortgages and use our ARM Mortgage Calculator. Quickly discover the maximum monthly payment, total interest, and more information for each type of mortgage. When you’re done, print out a comparison report and amortization schedule.
Learn more about adjustable-rate mortgages and make the best choice for your financial situation . . . .
What Is An Adjustable-Rate Mortgage?
An adjustable-rate mortgage is a mortgage whose interest rate is adjusted periodically to reflect market conditions. They are designed to transfer a degree of risk from the lender to the borrower. Should market conditions (the cost to the lender when borrowing on the credit markets) change, the lender will be able to raise interest rates on their customers at predetermined intervals (usually once per year) by a certain percentage.
ARMs have several unique features including but not limited to:
Additionally, ARMs can have special conditions such as initial discounts, negative amortization when mortgage payments are too small and there’s not enough money to pay the interest at the beginning of the loan, future conversion to fixed-rate mortgage requirements, or prepayment requirements.
Some of these features can be desirable, but not all. Let’s take a closer look at more specific adjustable-rate mortgage pros and cons.
Adjustable-Rate Mortgage Pros And Cons
Adjustable-rate mortgages have their share of advantages and disadvantages – including non-financial consequences. Take a look:
Adjustable-rate mortgages are not for everyone. Before making a decision, it is essential to do your research and compare loan options.
Just like any other long-term loan, plan for the future. If you are looking at living in the home for a short period of time, an adjustable-rate mortgage may be the best option 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.
Try out the ARM Mortgage Calculator and start your research today!
ARM Mortgage Calculator Terms & Definitions
Related Mortgage Calculators: