ARM details
Payment during fixed period
The adjusted rate is an assumption you enter — real ARM adjustments depend on an index, margin, and rate caps.
How an adjustable-rate mortgage works
An adjustable-rate mortgage (ARM) has two phases: an initial fixed period — commonly 5, 7, or 10 years — during which the rate and payment are set, followed by an adjustable period where the rate can change periodically. A “7/6 ARM,” for example, is fixed for seven years, then adjusts every six months.
When an ARM adjusts, the new rate is based on a published index plus a fixed margin, subject to rate caps that limit how much it can move at each adjustment and over the life of the loan. Because no one can predict future index levels, this calculator lets you enter an assumed post-adjustment rate to see how your payment might change. ARMs can make sense if you expect to move or refinance before the fixed period ends — but it’s wise to understand the potential payment if you keep it longer.
Ready for real numbers?
Turn an estimate into a personalized quote
A calculator is a great starting point, but your actual options depend on your full picture. A licensed loan originator can give you real numbers with no obligation.
Related