Comparison
Fixed vs ARM Calculator
Compare fixed rate and adjustable rate mortgages to see which option saves you more money.
Loan Details
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$
years
Rate Comparison
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7-Year Comparison$21,069 Savedwith ARM
Fixed Rate
$2,076/mo
Total: $174,343
5/1 ARM
$1,867/mo
First 5 years
$1,718/mo
Total: $153,274
Loan Amount$320,000
ARM Fully Indexed5.00%
Fixed Rate Mortgages
A fixed rate mortgage locks in your interest rate for the life of the loan, providing predictable monthly payments.
Pros
- Stable, predictable payments
- Protection from rate increases
- Easier to budget
- Peace of mind long-term
Cons
- Higher initial rate
- May pay more if rates drop
- Less flexibility
Adjustable Rate Mortgages
An ARM starts with a lower fixed rate for a set period, then adjusts based on market conditions.
Pros
- Lower initial payments
- Could benefit if rates drop
- Good for short-term owners
Cons
- Uncertainty after fixed period
- Payment can increase significantly
- Harder to budget long-term