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Adjustable Rate Mortgage Calculator
Adjustable Rate Mortgage Calculator*
- Calculate the monthly payments for an adjustable rate mortgage (ARM loan) and view worst case scenario of mortgage rate adjustments and the affect on the monthly
mortgage payments. ARM loans have built in adjustment caps. Typical adjustable rate mortgages will adjust a maximum of 1%
ever 6 months or 2% or every 12 months. There are other types of adjustable
rate mortgages for which we also have mortgage calculators such as: 2 year arm mortgage,
3 year arm loan, 5 year arm mortgages, 7 year arm mortgages and the once popular pay option arm /
pick a payment mortgage with possible negative amortization.
This adjustable rate mortgage calculator displays worst case adjustments of mortgage rates and monthly payments as principal pay-down
is not calculated by the arm mortgage calculator. ARM loan options assumes a 6% lifetime mortgage rate cap.
Adjustable Rate Mortgage Calculator Instructions
Step 1: Enter Your Estimated Adjustable Rate Mortgage Loan Amount
Step 2: Select ARM Loan Initial Starting Interest Rate & Amortization Type
Step 3: Click "Calculate Adjustable Rate Mortgage Loan"
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Adjustable Rate Mortgage Calculator
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Mortgage Loan Amount |
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Starting Interest Rate |
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Maximum Rate Adjustments |
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Adjustable Rate Mortgage Calculator
Results
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Max. Adjustments |
Monthly Payment |
Monthly Increase |
% Increase of Payment |
Mortgage
Rate |
Loan Amortization |
Initial
12
Months |
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% |
% |
Mths |
1st. Adjustment
at
12
Months |
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% |
% |
Mths |
2nd. Adjustment
at
24
Months |
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% |
% |
Mths |
3rd. Adjustment
at
36
Months |
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% |
% |
Mths |
4th. Adjustment
at
48
Months |
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% |
% |
Mths |
5th. Adjustment
at
60
Months |
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% |
% |
Mths |
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ARM Loan Adjustment Summary
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This adjustable rate mortgage calculator assumes a worst case scenario for an adjustable rate mortgage.
For this worst case scenario to take place, your ARM loan's "Index" will need to increase
by at least
2
% at each one of the
12
month adjustments. Here is the definitions of each field:
Monthly Payment: Based on a loan amount of
200,000
and an start rate of
5.375%
your monthly payments would be
896. This is your worst case scenario of the maximum monthly payment after each interest rate adjustment . These mortgage payments do not include property
taxes, homeowners insurance or PMI (private mortgage insurance) if applicable.
Monthly Difference: This displays the difference in monthly mortgage
payments
from the initial starting monthly
payments of
896 and the worst case scenario payment of
2015
at the first payment adjustment and the four following adjustments. Based on the
information you provided, in
12
months your montly payment would increase by a maximum of 499
per month.
% Increase: The increase in monthly payments
as a percentage amount over the inititial starting monthly payments. In this scenario,
assuming a worst case, your payments would increase by
2
% over your intitial monthly payments of
896.
Mortgage Rate: Your initial mortgage start rate is
5.375
%. Based on your selections, the maximum interest rate at the time of the first
loan adjustment in
12 months would be
7.375
%. Typically most adjustable rate mortgages have a maximum 6% life time cap
for the mortgage which would be
11.375
%.
Loan Amortization: This indicates the amortization period of your adjustable rate mortgage. You are beginning with a 30 year mortgage.
At your first mortgage payment adjustment, your mortgage payment is based on a
30 year amortized loan wtih an interest rate of
5.375%. At
your second adjustment, your loan is calculated on a on
29
year amortized loan at the new higher mortgage rate. At each loan adjustment,
your amortization schedule gets progressively shorter, thereby increasing the monthly
payments.
Note: The amortization schedule used to calculate the new payment does not calculate
your principal pay-down, therefore these estimates may be higher than the actual
payments.
If you have any questions or comments regarding the results of this mortgage calculator,
please feel free to contact us. View other mortgage calculator.
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Adjustable Rate Mortgage Calculator Disclosure* - The information provided on or
through this site is for purposes of general consumer education only and is not
intended as a substitute for advice from a qualified professional, such as, but
not limited to, a lawyer, mortgage broker, accountant, investment advisor, insurance
broker, financial planner, real estate agent or home inspector. We can not and do
not guarantee the accuracy or the applicability of this information to your circumstances.
We encourage you to seek personalized advice from qualified professionals regarding
all personal finance and real estate issues.
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