Calculators

Calculators:

Adjustable-rate Mortgage Calculator

What will my adjustable-rate mortgage (ARM)
payments be?
This calculator helps you determine the amount of your ARM payments.

Loan Amount - Enter the amount you plan to finance. For example, if you are buying a $300,000 home with a 20% down payment, your loan amount would be $240,000. Loan amount*:

Initial Interest Rate - Enter the starting rate that you will pay. You can find current rates from Freddie Mac at www.freddiemac.com. Initial interest rate*: %

Term In Years - The period of time between the beginning loan date and the date the entire balance of the loan is due. Term (in years)*:

Estimated Annual Property Tax - Some lenders will require you to open an escrow account, and your property taxes will be paid from that account by the lender. These payments are added to your monthly mortgage payment. Estimated annual property taxes:

Estimated Annual Homeowner's Insurance - Most lenders will require proof of a homeowners insurance policy before closing on your home. Some lenders will pay your homeowners insurance from your escrow account. These payments are added to your monthly mortgage payment. Estimated annual homeowners insurance:

About Your ARM

Length of Initial Rate Term - The number of months until your first rate adjustment. For example, on a 5/1 hybrid ARM with a 30-year amortization period, your first rate adjustment will take place after five years (or 60 months). You would therefore choose "60." Length of initial rate term (in months)*:

Index - An interest rate based on the returns of investments such as U.S. Treasury securities. To determine rates for adjustable rate mortgages, lenders start with a particular index rate and then add a margin to get the final rate. As the index changes, so does the rate on your ARM. If you don't know your index, ask your lender. Index*: %

Margin - The amount a lender adds to an index rate to establish the interest rate on an adjustable rate mortgage. The index and the margin added together will equal the rate you pay. You can find average margins on www.freddiemac.com, or you can ask your lender what your margin is. Margin*: %

Expected amount of index adjustment - Estimate how much you think your interest rate will increase or decrease at your first adjustment period. Make sure you use a negative sign in front of the value for a decrease in the rate. For example, if you think after your initial period that interest rates will fall 0.5 percent, enter "-0.5". Expected amount of index adjustment*: %

Lifetime Cap - This is the highest interest rate possible under an adjustable rate mortgage. Also called an "interest rate ceiling," it's based on the number of percentage points your rate can increase from the initial rate. Lifetime cap*: %

Asterisk (*) indicates required fields.

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