100% x 90

ARM Mortgage Calculator

Calculate adjustable rate mortgage payments with variable interest rates and caps

Loan Details

Loan Amount

Total mortgage loan amount

Loan Term (Years)

Total length of the loan

Initial Interest Rate

Fixed rate for initial period

ARM Type

Fixed rate for 10 years, then adjusts every 1 year(s)

ARM Adjustment Settings

Expected Rate Adjustment

Expected increase per adjustment period

Lifetime Rate Cap

Maximum rate over loan lifetime

Periodic Adjustment Cap

Maximum change per adjustment

Interest Rate Floor

Minimum possible interest rate

Payment Analysis

$1,342

Initial Payment

Years 1-10

$1,399

First Adjustment

At 5.50%

$1,701

Maximum Payment

At 8.00% cap

Payment Range Summary

Fixed Period: $1,342/month for 10 years at 5.00%

Adjustable Period: $1,399 - $1,701/month

Payment Increase: Up to $359 additional per month

Balance at Adjustment: $203,355

Cost Analysis

Initial Period Interest: $114,402

Estimated Total Interest: $283,022

Total Loan Payments: $533,022

Interest as % of Loan: 113.2%

Understanding Adjustable Rate Mortgages (ARM)

How ARMs Work

An Adjustable Rate Mortgage starts with a fixed interest rate for an initial period, then adjusts periodically based on market conditions. The rate is typically tied to an index plus a margin.

ARM Benefits

•Lower initial interest rates
•Lower initial monthly payments
•More buying power initially
•Good for short-term homeowners

ARM Risks

The main risk is payment shock when rates adjust upward. Borrowers should understand caps, adjustment frequencies, and prepare for potential payment increases.