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Using an ARM Mortgage Calculator

arm mortgage calculator

An ARM Mortgage Calculator can help you understand the ARM Mortgage Program better!

This is an important mortgage tool since an ARM (short for Adjustable Rate Mortgage), does not contain a fixed payment every year, but rather a payment that adjusts itself according to current interest rates.

So, just because you have a low payment this year does not mean you will next year, and vice versa.

How Can an ARM Mortgage Calculator Help You?

An ARM calculator supplies many functions that other mortgage calculators cannot.

  • By using an ARM mortgage calculator you can determine what your specific payment may be during an interest rate phase and whether it would still be feasible for you at that time.
  • You can also determine what your starting monthly payments would be and the total interest would be according to your individual ARM loan terms.
  • Your interest rate may also be fixed for a certain amount of months before it becomes eligible for adjustments. An ARM calculator is the tool that will let you factor this fixed period into your anticipated payment schedule.
Why Use an ARM Mortgage Calculator?

The best reason to use an ARM calculator is to determine what your overall maximum payment may be based on your own individual factors.

For example, If you input 60 months before and 12 months between your adjustments, your expected adjustment rate at 0.25%, and your interest rate cap at 12.000%, then an ARM calculator can tell you what your monthly maximum payment will be.

In this case the payment is $787.77. You can then determine if you "would be able to make that maximum payment."


It is best only to apply for a loan if you know you will be able to make the maximum monthly payment that an ARM mortgage calculator generates for you! 

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