ARM vs. Fixed Rate Mortgage Results

A Fully Amortizing ARM could save you SAVINGS_ARM_MONTH per month. An Interest Only ARM could save you as much as SAVINGS_IO_MONTH per month.

A LOAN_AMOUNT Fixed Rate Mortgage with a term of TERM years at INTEREST_RATE0 has a monthly payment of MONTHLY_PI0. If you were to finance this mortgage with a Fully Amortizing ARM at INTEREST_RATE1 the monthly payment would be MONTHLY_PI1, saving you SAVINGS_ARM_MONTH per month. An Interest Only ARM at INTEREST_RATE2 has a MONTHLY_PI2 monthly payment. This could save your SAVINGS_IO_MONTH per month over a Fixed Rate Mortgage.

ARM vs. Fixed Rate Mortgage
 Fully Amortizing ARMInterest Only ARM
Initial savings on monthly paymentSAVINGS_ARM_MONTHSAVINGS_IO_MONTH
Payment savings first yearSAVINGS_ARM_FIRST_YEARSAVINGS_IO_FIRST_YEAR
Payment savings for five yearsSAVINGS_ARM_FIVE_YEARSAVINGS_IO_FIVE_YEAR
BREAK_EVEN_NOTE*

*This only applies to the Fully Amortizing ARM vs. Fixed Rate Mortgage.

Results Summary
 Fixed Rate MortgageFully Amortizing ARMInterest Only ARM
Loan amountLOAN_AMOUNTLOAN_AMOUNTLOAN_AMOUNT
TermTERM yearsTERM yearsTERM years
Interest rateINTEREST_RATE0
Fixed for TERM years.		INTEREST_RATE1
Rate is fixed for ADJUSTABLE_MONTHS_FIXED1 months and then is adjusted by ADJUSTABLE_RATE_INCR1 every ADJUSTABLE_RATE_FEQ1 months, up to a maximum of ADJUSTABLE_RATE_CAP1. The highest rate actually charged was HIGHEST_RATE1.		INTEREST_RATE2
Rate is fixed for ADJUSTABLE_MONTHS_FIXED2 months and then is adjusted by ADJUSTABLE_RATE_INCR2 every ADJUSTABLE_RATE_FEQ2 months, up to a maximum of ADJUSTABLE_RATE_CAP2. The highest rate actually charged was HIGHEST_RATE2.
Initial monthly paymentMONTHLY_PI0MONTHLY_PI1MONTHLY_PI2
First year totals:
  Interest
  Principal
  Payments
 FIRST_YEAR_INTEREST0
FIRST_YEAR_PRINCIPAL0
FIRST_YEAR_TOTAL0		FIRST_YEAR_INTEREST1
FIRST_YEAR_PRINCIPAL1
FIRST_YEAR_TOTAL1		FIRST_YEAR_INTEREST2
FIRST_YEAR_PRINCIPAL2
FIRST_YEAR_TOTAL2
Five year totals:
  Interest
  Principal
  Payments

 FIVE_YEAR_INTEREST0
FIVE_YEAR_PRINCIPAL0
FIVE_YEAR_TOTAL0		FIVE_YEAR_INTEREST1
FIVE_YEAR_PRINCIPAL1
FIVE_YEAR_TOTAL1		FIVE_YEAR_INTEREST2
FIVE_YEAR_PRINCIPAL2
FIVE_YEAR_TOTAL2
Total interestTOTAL_INTEREST0TOTAL_INTEREST1TOTAL_INTEREST2
Total paymentsTOTAL_PAYMENTS0TOTAL_PAYMENTS1TOTAL_PAYMENTS2
Ending balance ENDING_BALANCE0ENDING_BALANCE1ENDING_BALANCE2

Payment schedule
**REPEATING GROUP**

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.