An adjustable-rate mortgage (ARM) may provide appealing interest rates, but home payments are variable over the life of the loan. Whether you're thinking about a 5, 7 or 10 year ARM, use our calculator to find out what your adjustable mortgage payments may look like.
Use Our Adjustable-Rate Mortgage Calculator To Decide if an ARM Loan Fits Your Needs
At Nationwide Bank®, we’re here to walk you through the complete mortgage loan process. If you plan on staying in your home for a short period of time, an adjustable rate mortgage (ARM) loan may be the right financial choice for you. Unlike fixed rate mortgages that have a constant interest rate over the life of the loan, the interest rate on an ARM will fluctuate periodically. Depending on the terms of your loan, an ARM loan could help you pay less on what you borrow in the long run, with lower mortgage interest rates at the beginning of your loan. An ARM typically offers lower interest rates than other mortgage loans up front.
ARM loans also have set adjustment periods during which your interest rate may increase or decrease based on market conditions. However, rate caps are put in place to ensure your interest rate can never increase by more than a certain amount.
To find out, simply enter the mortgage amount, loan term in years and interest rate cap in the calculator. The ARM mortgage calculator will help determine your payments over the life of the loan.
Interest rate cap – The maximum interest rate allowed by your mortgage. Your interest rate will not be adjusted above this cap.
Months before first adjustment – The number of months that the interest rate remains fixed. After this period, it will be subject to rate adjustments.
Expected adjustment – The amount you anticipate your mortgage interest rate to vary.
Starting monthly payment – Monthly principal and interest payment based on initial balance and interest rate.
Total payments – Total of all monthly payments over life of the mortgage.
Total interest – Total of all interest paid over life of the mortgage.