10/1 ARM - Example
A 10/1 ARM refers to an adjustable rate mortgage with an interest rate that is fixed for 10 years and that adjusts annually after that.
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In this example, we look at a 10/1 ARM for $230,000 with a starting interest rate of 6.625%. It has a 2% cap on each adjustment. It has no floor rate and a lifetime maximum interest rate of 11.625%. The index and margin are 5.2% and 1.425% respectively. When you press the button you will see that if the index rate remains stable you would end up paying $300,176 in total interest over the life of the loan.
Click on the Calculate button below to generate the amortization schedule for this example or enter your own information or explore the other examples.
The Basics: The Floor Rate Matters Margin Makes a Difference Payment Shock
Interest Rate Caps are Important Comparing Future Interest Rate Scenarios
Common Loan Types: 1/1 ARM 3/1 ARM 5/1 ARM 7/1 ARM 10/1 ARM
Other Examples: 2/28 3/27 5/25
