Compare adjustable-rate mortgages (ARM) vs fixed-rate mortgages. Analyze payment volatility, total costs, and see which mortgage type works better for your timeline and financial situation. Perfect for homebuyers evaluating 5/1 ARM, 7/1 ARM, and fixed-rate options.
Loan Basics
Fixed-Rate Settings
ARM Settings
Advanced ARM caps & limits
ARM SAVES $21,103over your 7.0-year horizon
Which might suit your needs?
Over your 7.0-year horizon, the ARM is projected to cost $21,103 less than the fixed-rate option (including upfront costs).
- Your horizon extends beyond the introductory period. Consider your comfort with payment changes at resets and your expectations for future rates.
- On payment volatility, your ARM payment could range from $2,373 to $2,485 over the horizon (max increase of $113 from the initial payment).
Rules of thumb: If you value certainty or believe rates will rise faster than your assumed path, a fixed rate fits better. If you'll move or refinance before the first reset and can handle potential increases, an ARM can reduce total cost.
This tool is for education only. It does not provide financial or tax advice. Rates and caps vary by lender and note. Always review your specific loan terms.
Average Payment by Year (P&I + extras)
- Fixed
- ARM
Remaining Balance at Year End
- Fixed
- ARM
Cumulative Interest (through year)
- Fixed
- ARM
ARM Rate Path (avg by year)
- ARM average rate
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