Fixed Rate Mortgage:Press spacebar to hide inputs | Monthly payment $0.00 |
Fully Amortizing ARM:Press spacebar to hide inputs | Initial payment $0.00 |
Monthly Payment by Mortgage Typepress spacebar to hide graph |
A fixed-rate mortgage has the same interest rate and monthly payment throughout the term of the mortgage.
This calculator shows a "fully amortizing" ARM, which is the most common type of ARM. The monthly payment is calculated to pay off the entire mortgage balance at the end of a 30-year term. After the initial period, the interest rate and monthly payment adjust at the frequency specified. The amount an ARM can adjust each year, and over the life of the loan, are typically capped. Below is a list of common ARMs.
ARM Type | Months Fixed |
---|---|
10/1 ARM | Fixed for 120 months, adjusts annually for the remaining term of the loan. |
7/1 ARM | Fixed for 84 months, adjusts annually for the remaining term of the loan. |
5/1 ARM | Fixed for 60 months, adjusts annually for the remaining term of the loan. |
3/1 ARM | Fixed for 36 months, adjusts annually for the remaining term of the loan. |
Original or expected balance for your mortgage.
The number of years over which you will repay this loan. Common fixed-rate mortgage terms are 15, 20 and 30 years.
The annual adjustment you expect in your ARM, after the initial period ends. The range for this calculator is minus 3% to plus 3%. Use a negative value if you believe interest rates will decrease, a positive value if you believe they will increase.
Annual interest rate for each mortgage type. Typically an ARM will have a lower initial interest rate than a fixed-rate mortgage. Please note that the interest rate is different from the Annual Percentage Rate (APR), which includes other expenses such as mortgage insurance, and the origination fee and or point(s), which were paid when the mortgage was first originated. The APR is normally higher than the simple interest rate.
This is the number of months the rate is fixed for an ARM. During this period the interest rate and the monthly payment will remain fixed. The rate will then adjust annually by the amount entered in the "Expected Adjustment" field.
This is the highest allowable interest rate for your mortgage. Your interest rate can never be adjusted above this rate.
Monthly principal and interest payment (PI) for the fixed-rate mortgage and the fully amortizing ARM.
CIBM Bank
2913 W. Kirby Ave.
Champaign, IL