ARM
ARM Calculator
Calculate adjustable rate mortgage payments and see how your rate may change over time.
Loan Details
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Rate Information
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Initial Monthly Payment$1,919first 5 years
After Initial Period$1,718
Fully Indexed Rate5.000%
Loan Amount$320,000
Total Interest$630,462
Max Rate Possible11.0%
Max Payment$2,061
Understanding ARMs
Adjustable rate mortgages (ARMs) offer lower initial rates than fixed mortgages, but your rate can go up or down over time.
Common ARM Types
- 5/1 ARM: Fixed for 5 years, then adjusts annually
- 7/1 ARM: Fixed for 7 years, then adjusts annually
- 10/1 ARM: Fixed for 10 years, then adjusts annually
ARM Rate Adjustment
After the initial fixed period, your rate adjusts based on market conditions.
How ARMs Adjust
- Index Rate: Market rate (like COFI, LIBOR, or SOFR)
- Margin: Lender's markup (typically 2-3%)
- Caps: Limits on rate increases
When an ARM Makes Sense
- Planning to sell within a few years
- Expecting rates to drop
- Wanting lower initial payments