ARM Mortgage Calculator
Calculate an adjustable-rate mortgage payment before and after the rate adjusts. See your initial payment, the new payment once the fixed period ends, and the increase. Free and accurate.
- Initial payment
- 1610.46
- Adjusted payment
- 1947.08
- Payment increase
- 336.61
How to use
- Enter the loan amount and the initial (teaser) interest rate.
- Enter the fixed period in years, the rate it adjusts to, and the total loan term in years.
- Read the initial payment, the adjusted payment, and how much the payment increases.
Examples
- $300k, 5/7 ARM, 30 yr:
initial $1,610.46 → adjusted $1,947.08 - Payment increase:
+$336.61 per month after year 5
FAQ
- What is an adjustable-rate mortgage (ARM)?
- An ARM has a fixed initial rate for a set period (e.g. 5 years), then the rate adjusts. A 5/1 ARM is fixed for 5 years, then can adjust annually.
- How is the adjusted payment calculated?
- The loan is amortized at the initial rate through the fixed period to find the remaining balance, then re-amortized over the remaining months at the adjusted rate.
- Why does the payment go up so much?
- When the rate adjusts higher, the remaining balance is spread over fewer months at a higher rate, so the new monthly payment is larger than the initial one.