How to use this calculator
An ARM can make sense when the initial rate savings are meaningful and you expect to sell or refinance before the adjustment period. A fixed-rate mortgage is simpler and more predictable because the principal and interest payment does not change over the term.
ARM loans have an initial fixed period, such as 5, 7, or 10 years. After that, the rate can adjust based on an index such as SOFR plus a margin, subject to caps. Caps limit how much the rate can change at first adjustment, each later adjustment, and over the life of the loan.
This calculator compares total payments and interest over the years you expect to keep the loan. It also shows a risk scenario if the ARM adjusts higher. The right answer depends on timeline, payment comfort, refinance flexibility, and risk tolerance.
For illustration purposes only. Not a rate quote, loan offer, or commitment to lend. Contact us for a personalized quote.