Finance

ARM Mortgage Calculator

Compare adjustable-rate mortgage scenarios: initial savings, worst-case rate adjustments, and vs fixed rate.

Loan Amount ($)

ARM Type

Loan Term (years)

Initial ARM Rate (%)

Expected Adjusted Rate (%)

Lifetime Cap (% above initial)

Compare: Fixed Rate (%)

ARM Structure:
X/1 = Fixed for X years, then adjusts annually
Max Rate = Initial Rate + Lifetime Cap
Payment recalculated on remaining balance at new rate

ARM vs Fixed Decision

Choose ARM if: you'll sell/refinance before the fixed period ends, rates may drop, or the initial savings is significant. Choose fixed if: you're staying long-term, value payment predictability, or rates may rise.

Common ARM Types

Type	Fixed Period	Best For
3/1 ARM	3 years	Short-term stays, flips
5/1 ARM	5 years	Most popular ARM choice
7/1 ARM	7 years	Medium-term plans
10/1 ARM	10 years	Uncertain timeline