Adjustable Rate Mortgage Calculator

Adjustable-rate mortgages (ARM Mortgage) is a less common, but still utilized mortgage option used today. ARMs can be a useful option in certain situations. For the right borrower, an adjustable-rate loan may offer many benefits compared to a fixed-rate loan.

Adjustable-rate mortgages offer a lower interest rate at the beginning of the loan period. This low introductory rate eventually expires, increasing the mortgage based on an outside index. This means that borrowers will be paying off their mortgage quickly (such as those with a large amount of savings from a previous home sale) can benefit from the lower intro rate, paying off the full amount of the loan before rate increases.

Several different types of ARMs are available to borrowers. The primary categories are ARMs that adjust annually, and ARMs that adjust semi-annually. Most ARMs also include a cap on the amount that your monthly payment can increase, keeping the interest rate from spiking too rapidly.

Borrowers who plan to move within 3-5 years of acquiring their loan may find great value in an adjustable-rate mortgage to take advantage of the low introductory rate. The mortgage experts at Mortgage Lender Columbus will help you weigh current market conditions, personal goals and risk tolerance when considering this type of loan.

Want to know what your monthly payments might be under an adjustable-rate mortgage? The calculator below estimates payments and interest for an ARM, with the maximum rate increases allowed at each interval until the cap is reached.

Are you looking to take the next step towards pre-qualification? Mortgage Lender Columbus is here to assist you! Our team of experts will help you take advantage of any savings you may be entitled to, such as loan or down payment assistance programs.