2/28 Adjustable Rate Mortgage - Example

A 2/28 is often a subprime mortgage that may have higher rates and depending on where you live may have a prepayment penalty. The 2 refers to the number of years that the loan is fixed while the 28 refers to the number of years that the loan is adjustable after that. So a 2/28 mortgage is usually due in 30 years. Typically they may adjust every 6 months after the initial fixed period expires.

In this example, we look at 2/28 mortgage for \$200,000 with a starting interest rate of 7.5%. It has a 3% cap on the first adjustment and a 1% cap on each additional adjustment. It has a minimum interest rate equal to the start rate and a lifetime maximum interest rate of 13.5%. The index and margin are 5.34% and 3% respectively.

Use the ARM calculator to explore how your interest rate and payment can change.

Note that the fully indexed rate (i.e. index plus margin) is more than the start rate so even if the index rate remains stable the interest rate will increase after two years and you would end up paying \$341,186 in total interest.
Stable
MonthInterest
Rate
Index
Rate
Payment Interest Principal Balance
17.500%5.340%\$1,398\$1,250\$148\$199,852
27.500%5.340%\$1,398\$1,249\$149\$199,702
37.500%5.340%\$1,398\$1,248\$150\$199,552
47.500%5.340%\$1,398\$1,247\$151\$199,401
57.500%5.340%\$1,398\$1,246\$152\$199,249
67.500%5.340%\$1,398\$1,245\$153\$199,095
77.500%5.340%\$1,398\$1,244\$154\$198,941
87.500%5.340%\$1,398\$1,243\$155\$198,786
97.500%5.340%\$1,398\$1,242\$156\$198,630
107.500%5.340%\$1,398\$1,241\$157\$198,473
117.500%5.340%\$1,398\$1,240\$158\$198,315
127.500%5.340%\$1,398\$1,239\$159\$198,156
Year 1  \$16,781\$14,937\$1,844
137.500%5.340%\$1,398\$1,238\$160\$197,996
147.500%5.340%\$1,398\$1,237\$161\$197,835
157.500%5.340%\$1,398\$1,236\$162\$197,673
167.500%5.340%\$1,398\$1,235\$163\$197,510
177.500%5.340%\$1,398\$1,234\$164\$197,346
187.500%5.340%\$1,398\$1,233\$165\$197,181
197.500%5.340%\$1,398\$1,232\$166\$197,015
207.500%5.340%\$1,398\$1,231\$167\$196,848
217.500%5.340%\$1,398\$1,230\$168\$196,680
227.500%5.340%\$1,398\$1,229\$169\$196,511
237.500%5.340%\$1,398\$1,228\$170\$196,341
247.500%5.340%\$1,398\$1,227\$171\$196,170
Year 2  \$16,781\$14,794\$1,987
258.340%5.340%\$1,511\$1,363\$147\$196,022
268.340%5.340%\$1,511\$1,362\$148\$195,874
278.340%5.340%\$1,511\$1,361\$149\$195,724
288.340%5.340%\$1,511\$1,360\$151\$195,574
298.340%5.340%\$1,511\$1,359\$152\$195,422
308.340%5.340%\$1,511\$1,358\$153\$195,269
318.340%5.340%\$1,511\$1,357\$154\$195,116
328.340%5.340%\$1,511\$1,356\$155\$194,961
338.340%5.340%\$1,511\$1,355\$156\$194,805
348.340%5.340%\$1,511\$1,354\$157\$194,648
358.340%5.340%\$1,511\$1,353\$158\$194,490
368.340%5.340%\$1,511\$1,352\$159\$194,331
Year 3  \$18,130\$16,291\$1,838
378.340%5.340%\$1,511\$1,351\$160\$194,171
388.340%5.340%\$1,511\$1,349\$161\$194,010
398.340%5.340%\$1,511\$1,348\$162\$193,847
408.340%5.340%\$1,511\$1,347\$164\$193,684
418.340%5.340%\$1,511\$1,346\$165\$193,519
428.340%5.340%\$1,511\$1,345\$166\$193,353
438.340%5.340%\$1,511\$1,344\$167\$193,186
448.340%5.340%\$1,511\$1,343\$168\$193,018
458.340%5.340%\$1,511\$1,341\$169\$192,849
468.340%5.340%\$1,511\$1,340\$170\$192,678
478.340%5.340%\$1,511\$1,339\$172\$192,507
488.340%5.340%\$1,511\$1,338\$173\$192,334
Year 4  \$18,130\$16,132\$1,998
498.340%5.340%\$1,511\$1,337\$174\$192,160
508.340%5.340%\$1,511\$1,336\$175\$191,984
518.340%5.340%\$1,511\$1,334\$177\$191,808
528.340%5.340%\$1,511\$1,333\$178\$191,630
538.340%5.340%\$1,511\$1,332\$179\$191,451
548.340%5.340%\$1,511\$1,331\$180\$191,271
558.340%5.340%\$1,511\$1,329\$181\$191,089
568.340%5.340%\$1,511\$1,328\$183\$190,907
578.340%5.340%\$1,511\$1,327\$184\$190,723
588.340%5.340%\$1,511\$1,326\$185\$190,537
598.340%5.340%\$1,511\$1,324\$187\$190,351
608.340%5.340%\$1,511\$1,323\$188\$190,163
Year 5  \$18,130\$15,959\$2,171
618.340%5.340%\$1,511\$1,322\$189\$189,974
628.340%5.340%\$1,511\$1,320\$190\$189,783
638.340%5.340%\$1,511\$1,319\$192\$189,591
648.340%5.340%\$1,511\$1,318\$193\$189,398
658.340%5.340%\$1,511\$1,316\$194\$189,204
668.340%5.340%\$1,511\$1,315\$196\$189,008
678.340%5.340%\$1,511\$1,314\$197\$188,811
688.340%5.340%\$1,511\$1,312\$199\$188,612
698.340%5.340%\$1,511\$1,311\$200\$188,412
708.340%5.340%\$1,511\$1,309\$201\$188,211
718.340%5.340%\$1,511\$1,308\$203\$188,008
728.340%5.340%\$1,511\$1,307\$204\$187,804
Year 6  \$18,130\$15,771\$2,359
738.340%5.340%\$1,511\$1,305\$206\$187,599
748.340%5.340%\$1,511\$1,304\$207\$187,392
758.340%5.340%\$1,511\$1,302\$208\$187,183
768.340%5.340%\$1,511\$1,301\$210\$186,973
778.340%5.340%\$1,511\$1,299\$211\$186,762
788.340%5.340%\$1,511\$1,298\$213\$186,549
798.340%5.340%\$1,511\$1,297\$214\$186,335
808.340%5.340%\$1,511\$1,295\$216\$186,119
818.340%5.340%\$1,511\$1,294\$217\$185,902
828.340%5.340%\$1,511\$1,292\$219\$185,683
838.340%5.340%\$1,511\$1,290\$220\$185,463
848.340%5.340%\$1,511\$1,289\$222\$185,241
Year 7  \$18,130\$15,566\$2,563
858.340%5.340%\$1,511\$1,287\$223\$185,018
868.340%5.340%\$1,511\$1,286\$225\$184,793
878.340%5.340%\$1,511\$1,284\$226\$184,566
888.340%5.340%\$1,511\$1,283\$228\$184,338
898.340%5.340%\$1,511\$1,281\$230\$184,108
908.340%5.340%\$1,511\$1,280\$231\$183,877
918.340%5.340%\$1,511\$1,278\$233\$183,644
928.340%5.340%\$1,511\$1,276\$234\$183,410
938.340%5.340%\$1,511\$1,275\$236\$183,174
948.340%5.340%\$1,511\$1,273\$238\$182,936
958.340%5.340%\$1,511\$1,271\$239\$182,697
968.340%5.340%\$1,511\$1,270\$241\$182,455
Year 8  \$18,130\$15,344\$2,785
978.340%5.340%\$1,511\$1,268\$243\$182,213
988.340%5.340%\$1,511\$1,266\$244\$181,968
998.340%5.340%\$1,511\$1,265\$246\$181,722
1008.340%5.340%\$1,511\$1,263\$248\$181,474
1018.340%5.340%\$1,511\$1,261\$250\$181,225
1028.340%5.340%\$1,511\$1,260\$251\$180,974
1038.340%5.340%\$1,511\$1,258\$253\$180,721
1048.340%5.340%\$1,511\$1,256\$255\$180,466
1058.340%5.340%\$1,511\$1,254\$257\$180,209
1068.340%5.340%\$1,511\$1,252\$258\$179,951
1078.340%5.340%\$1,511\$1,251\$260\$179,691
1088.340%5.340%\$1,511\$1,249\$262\$179,429
Year 9  \$18,130\$15,103\$3,027
1098.340%5.340%\$1,511\$1,247\$264\$179,165
1108.340%5.340%\$1,511\$1,245\$266\$178,899
1118.340%5.340%\$1,511\$1,243\$267\$178,632
1128.340%5.340%\$1,511\$1,241\$269\$178,363
1138.340%5.340%\$1,511\$1,240\$271\$178,091
1148.340%5.340%\$1,511\$1,238\$273\$177,818
1158.340%5.340%\$1,511\$1,236\$275\$177,543
1168.340%5.340%\$1,511\$1,234\$277\$177,267
1178.340%5.340%\$1,511\$1,232\$279\$176,988
1188.340%5.340%\$1,511\$1,230\$281\$176,707
1198.340%5.340%\$1,511\$1,228\$283\$176,424
1208.340%5.340%\$1,511\$1,226\$285\$176,140
Year 10  \$18,130\$14,841\$3,289
1218.340%5.340%\$1,511\$1,224\$287\$175,853
1228.340%5.340%\$1,511\$1,222\$289\$175,564
1238.340%5.340%\$1,511\$1,220\$291\$175,274
1248.340%5.340%\$1,511\$1,218\$293\$174,981
1258.340%5.340%\$1,511\$1,216\$295\$174,686
1268.340%5.340%\$1,511\$1,214\$297\$174,390
1278.340%5.340%\$1,511\$1,212\$299\$174,091
1288.340%5.340%\$1,511\$1,210\$301\$173,790
1298.340%5.340%\$1,511\$1,208\$303\$173,487
1308.340%5.340%\$1,511\$1,206\$305\$173,182
1318.340%5.340%\$1,511\$1,204\$307\$172,875
1328.340%5.340%\$1,511\$1,201\$309\$172,566
Year 11  \$18,130\$14,555\$3,574
1338.340%5.340%\$1,511\$1,199\$311\$172,254
1348.340%5.340%\$1,511\$1,197\$314\$171,940
1358.340%5.340%\$1,511\$1,195\$316\$171,625
1368.340%5.340%\$1,511\$1,193\$318\$171,307
1378.340%5.340%\$1,511\$1,191\$320\$170,986
1388.340%5.340%\$1,511\$1,188\$322\$170,664
1398.340%5.340%\$1,511\$1,186\$325\$170,339
1408.340%5.340%\$1,511\$1,184\$327\$170,012
1418.340%5.340%\$1,511\$1,182\$329\$169,683
1428.340%5.340%\$1,511\$1,179\$332\$169,352
1438.340%5.340%\$1,511\$1,177\$334\$169,018
1448.340%5.340%\$1,511\$1,175\$336\$168,682
Year 12  \$18,130\$14,246\$3,884
1458.340%5.340%\$1,511\$1,172\$338\$168,343
1468.340%5.340%\$1,511\$1,170\$341\$168,002
1478.340%5.340%\$1,511\$1,168\$343\$167,659
1488.340%5.340%\$1,511\$1,165\$346\$167,314
1498.340%5.340%\$1,511\$1,163\$348\$166,966
1508.340%5.340%\$1,511\$1,160\$350\$166,615
1518.340%5.340%\$1,511\$1,158\$353\$166,262
1528.340%5.340%\$1,511\$1,156\$355\$165,907
1538.340%5.340%\$1,511\$1,153\$358\$165,549
1548.340%5.340%\$1,511\$1,151\$360\$165,189
1558.340%5.340%\$1,511\$1,148\$363\$164,826
1568.340%5.340%\$1,511\$1,146\$365\$164,461
Year 13  \$18,130\$13,909\$4,220
1578.340%5.340%\$1,511\$1,143\$368\$164,093
1588.340%5.340%\$1,511\$1,140\$370\$163,723
1598.340%5.340%\$1,511\$1,138\$373\$163,350
1608.340%5.340%\$1,511\$1,135\$376\$162,975
1618.340%5.340%\$1,511\$1,133\$378\$162,597
1628.340%5.340%\$1,511\$1,130\$381\$162,216
1638.340%5.340%\$1,511\$1,127\$383\$161,832
1648.340%5.340%\$1,511\$1,125\$386\$161,446
1658.340%5.340%\$1,511\$1,122\$389\$161,058
1668.340%5.340%\$1,511\$1,119\$391\$160,666
1678.340%5.340%\$1,511\$1,117\$394\$160,272
1688.340%5.340%\$1,511\$1,114\$397\$159,875
Year 14  \$18,130\$13,543\$4,586
1698.340%5.340%\$1,511\$1,111\$400\$159,475
1708.340%5.340%\$1,511\$1,108\$402\$159,073
1718.340%5.340%\$1,511\$1,106\$405\$158,668
1728.340%5.340%\$1,511\$1,103\$408\$158,260
1738.340%5.340%\$1,511\$1,100\$411\$157,849
1748.340%5.340%\$1,511\$1,097\$414\$157,435
1758.340%5.340%\$1,511\$1,094\$417\$157,018
1768.340%5.340%\$1,511\$1,091\$420\$156,599
1778.340%5.340%\$1,511\$1,088\$422\$156,176
1788.340%5.340%\$1,511\$1,085\$425\$155,751
1798.340%5.340%\$1,511\$1,082\$428\$155,323
1808.340%5.340%\$1,511\$1,079\$431\$154,891
Year 15  \$18,130\$13,146\$4,984
1818.340%5.340%\$1,511\$1,076\$434\$154,457
1828.340%5.340%\$1,511\$1,073\$437\$154,020
1838.340%5.340%\$1,511\$1,070\$440\$153,579
1848.340%5.340%\$1,511\$1,067\$443\$153,136
1858.340%5.340%\$1,511\$1,064\$447\$152,689
1868.340%5.340%\$1,511\$1,061\$450\$152,240
1878.340%5.340%\$1,511\$1,058\$453\$151,787
1888.340%5.340%\$1,511\$1,055\$456\$151,331
1898.340%5.340%\$1,511\$1,052\$459\$150,872
1908.340%5.340%\$1,511\$1,049\$462\$150,410
1918.340%5.340%\$1,511\$1,045\$465\$149,944
1928.340%5.340%\$1,511\$1,042\$469\$149,476
Year 16  \$18,130\$12,714\$5,416
1938.340%5.340%\$1,511\$1,039\$472\$149,004
1948.340%5.340%\$1,511\$1,036\$475\$148,529
1958.340%5.340%\$1,511\$1,032\$479\$148,050
1968.340%5.340%\$1,511\$1,029\$482\$147,568
1978.340%5.340%\$1,511\$1,026\$485\$147,083
1988.340%5.340%\$1,511\$1,022\$489\$146,594
1998.340%5.340%\$1,511\$1,019\$492\$146,102
2008.340%5.340%\$1,511\$1,015\$495\$145,607
2018.340%5.340%\$1,511\$1,012\$499\$145,108
2028.340%5.340%\$1,511\$1,008\$502\$144,606
2038.340%5.340%\$1,511\$1,005\$506\$144,100
2048.340%5.340%\$1,511\$1,002\$509\$143,591
Year 17  \$18,130\$12,245\$5,885
2058.340%5.340%\$1,511\$998\$513\$143,078
2068.340%5.340%\$1,511\$994\$516\$142,562
2078.340%5.340%\$1,511\$991\$520\$142,042
2088.340%5.340%\$1,511\$987\$524\$141,518
2098.340%5.340%\$1,511\$984\$527\$140,991
2108.340%5.340%\$1,511\$980\$531\$140,460
2118.340%5.340%\$1,511\$976\$535\$139,925
2128.340%5.340%\$1,511\$972\$538\$139,387
2138.340%5.340%\$1,511\$969\$542\$138,845
2148.340%5.340%\$1,511\$965\$546\$138,299
2158.340%5.340%\$1,511\$961\$550\$137,749
2168.340%5.340%\$1,511\$957\$553\$137,196
Year 18  \$18,130\$11,735\$6,395
2178.340%5.340%\$1,511\$954\$557\$136,639
2188.340%5.340%\$1,511\$950\$561\$136,078
2198.340%5.340%\$1,511\$946\$565\$135,512
2208.340%5.340%\$1,511\$942\$569\$134,943
2218.340%5.340%\$1,511\$938\$573\$134,371
2228.340%5.340%\$1,511\$934\$577\$133,794
2238.340%5.340%\$1,511\$930\$581\$133,213
2248.340%5.340%\$1,511\$926\$585\$132,628
2258.340%5.340%\$1,511\$922\$589\$132,039
2268.340%5.340%\$1,511\$918\$593\$131,446
2278.340%5.340%\$1,511\$914\$597\$130,848
2288.340%5.340%\$1,511\$909\$601\$130,247
Year 19  \$18,130\$11,181\$6,949
2298.340%5.340%\$1,511\$905\$606\$129,641
2308.340%5.340%\$1,511\$901\$610\$129,032
2318.340%5.340%\$1,511\$897\$614\$128,418
2328.340%5.340%\$1,511\$892\$618\$127,799
2338.340%5.340%\$1,511\$888\$623\$127,177
2348.340%5.340%\$1,511\$884\$627\$126,550
2358.340%5.340%\$1,511\$880\$631\$125,918
2368.340%5.340%\$1,511\$875\$636\$125,283
2378.340%5.340%\$1,511\$871\$640\$124,643
2388.340%5.340%\$1,511\$866\$645\$123,998
2398.340%5.340%\$1,511\$862\$649\$123,349
2408.340%5.340%\$1,511\$857\$654\$122,696
Year 20  \$18,130\$10,578\$7,551
2418.340%5.340%\$1,511\$853\$658\$122,038
2428.340%5.340%\$1,511\$848\$663\$121,375
2438.340%5.340%\$1,511\$844\$667\$120,708
2448.340%5.340%\$1,511\$839\$672\$120,036
2458.340%5.340%\$1,511\$834\$677\$119,359
2468.340%5.340%\$1,511\$830\$681\$118,678
2478.340%5.340%\$1,511\$825\$686\$117,992
2488.340%5.340%\$1,511\$820\$691\$117,301
2498.340%5.340%\$1,511\$815\$696\$116,606
2508.340%5.340%\$1,511\$810\$700\$115,905
2518.340%5.340%\$1,511\$806\$705\$115,200
2528.340%5.340%\$1,511\$801\$710\$114,490
Year 21  \$18,130\$9,924\$8,206
2538.340%5.340%\$1,511\$796\$715\$113,775
2548.340%5.340%\$1,511\$791\$720\$113,055
2558.340%5.340%\$1,511\$786\$725\$112,330
2568.340%5.340%\$1,511\$781\$730\$111,600
2578.340%5.340%\$1,511\$776\$735\$110,864
2588.340%5.340%\$1,511\$771\$740\$110,124
2598.340%5.340%\$1,511\$765\$745\$109,379
2608.340%5.340%\$1,511\$760\$751\$108,628
2618.340%5.340%\$1,511\$755\$756\$107,872
2628.340%5.340%\$1,511\$750\$761\$107,111
2638.340%5.340%\$1,511\$744\$766\$106,345
2648.340%5.340%\$1,511\$739\$772\$105,573
Year 22  \$18,130\$9,213\$8,917
2658.340%5.340%\$1,511\$734\$777\$104,796
2668.340%5.340%\$1,511\$728\$782\$104,013
2678.340%5.340%\$1,511\$723\$788\$103,226
2688.340%5.340%\$1,511\$717\$793\$102,432
2698.340%5.340%\$1,511\$712\$799\$101,633
2708.340%5.340%\$1,511\$706\$804\$100,829
2718.340%5.340%\$1,511\$701\$810\$100,019
2728.340%5.340%\$1,511\$695\$816\$99,203
2738.340%5.340%\$1,511\$689\$821\$98,382
2748.340%5.340%\$1,511\$684\$827\$97,555
2758.340%5.340%\$1,511\$678\$833\$96,722
2768.340%5.340%\$1,511\$672\$839\$95,883
Year 23  \$18,130\$8,440\$9,690
2778.340%5.340%\$1,511\$666\$844\$95,039
2788.340%5.340%\$1,511\$661\$850\$94,189
2798.340%5.340%\$1,511\$655\$856\$93,332
2808.340%5.340%\$1,511\$649\$862\$92,470
2818.340%5.340%\$1,511\$643\$868\$91,602
2828.340%5.340%\$1,511\$637\$874\$90,728
2838.340%5.340%\$1,511\$631\$880\$89,848
2848.340%5.340%\$1,511\$624\$886\$88,961
2858.340%5.340%\$1,511\$618\$893\$88,069
2868.340%5.340%\$1,511\$612\$899\$87,170
2878.340%5.340%\$1,511\$606\$905\$86,265
2888.340%5.340%\$1,511\$600\$911\$85,354
Year 24  \$18,130\$7,600\$10,529
2898.340%5.340%\$1,511\$593\$918\$84,436
2908.340%5.340%\$1,511\$587\$924\$83,512
2918.340%5.340%\$1,511\$580\$930\$82,582
2928.340%5.340%\$1,511\$574\$937\$81,645
2938.340%5.340%\$1,511\$567\$943\$80,702
2948.340%5.340%\$1,511\$561\$950\$79,752
2958.340%5.340%\$1,511\$554\$957\$78,795
2968.340%5.340%\$1,511\$548\$963\$77,832
2978.340%5.340%\$1,511\$541\$970\$76,862
2988.340%5.340%\$1,511\$534\$977\$75,886
2998.340%5.340%\$1,511\$527\$983\$74,902
3008.340%5.340%\$1,511\$521\$990\$73,912
Year 25  \$18,130\$6,688\$11,442
3018.340%5.340%\$1,511\$514\$997\$72,915
3028.340%5.340%\$1,511\$507\$1,004\$71,911
3038.340%5.340%\$1,511\$500\$1,011\$70,900
3048.340%5.340%\$1,511\$493\$1,018\$69,882
3058.340%5.340%\$1,511\$486\$1,025\$68,857
3068.340%5.340%\$1,511\$479\$1,032\$67,824
3078.340%5.340%\$1,511\$471\$1,039\$66,785
3088.340%5.340%\$1,511\$464\$1,047\$65,738
3098.340%5.340%\$1,511\$457\$1,054\$64,684
3108.340%5.340%\$1,511\$450\$1,061\$63,623
3118.340%5.340%\$1,511\$442\$1,069\$62,555
3128.340%5.340%\$1,511\$435\$1,076\$61,479
Year 26  \$18,130\$5,696\$12,433
3138.340%5.340%\$1,511\$427\$1,084\$60,395
3148.340%5.340%\$1,511\$420\$1,091\$59,304
3158.340%5.340%\$1,511\$412\$1,099\$58,205
3168.340%5.340%\$1,511\$405\$1,106\$57,099
3178.340%5.340%\$1,511\$397\$1,114\$55,985
3188.340%5.340%\$1,511\$389\$1,122\$54,863
3198.340%5.340%\$1,511\$381\$1,130\$53,734
3208.340%5.340%\$1,511\$373\$1,137\$52,597
3218.340%5.340%\$1,511\$366\$1,145\$51,451
3228.340%5.340%\$1,511\$358\$1,153\$50,298
3238.340%5.340%\$1,511\$350\$1,161\$49,137
3248.340%5.340%\$1,511\$342\$1,169\$47,968
Year 27  \$18,130\$4,619\$13,511
3258.340%5.340%\$1,511\$333\$1,177\$46,790
3268.340%5.340%\$1,511\$325\$1,186\$45,605
3278.340%5.340%\$1,511\$317\$1,194\$44,411
3288.340%5.340%\$1,511\$309\$1,202\$43,209
3298.340%5.340%\$1,511\$300\$1,210\$41,998
3308.340%5.340%\$1,511\$292\$1,219\$40,779
3318.340%5.340%\$1,511\$283\$1,227\$39,552
3328.340%5.340%\$1,511\$275\$1,236\$38,316
3338.340%5.340%\$1,511\$266\$1,245\$37,071
3348.340%5.340%\$1,511\$258\$1,253\$35,818
3358.340%5.340%\$1,511\$249\$1,262\$34,556
3368.340%5.340%\$1,511\$240\$1,271\$33,286
Year 28  \$18,130\$3,448\$14,682
3378.340%5.340%\$1,511\$231\$1,279\$32,006
3388.340%5.340%\$1,511\$222\$1,288\$30,718
3398.340%5.340%\$1,511\$213\$1,297\$29,421
3408.340%5.340%\$1,511\$204\$1,306\$28,114
3418.340%5.340%\$1,511\$195\$1,315\$26,799
3428.340%5.340%\$1,511\$186\$1,325\$25,474
3438.340%5.340%\$1,511\$177\$1,334\$24,140
3448.340%5.340%\$1,511\$168\$1,343\$22,797
3458.340%5.340%\$1,511\$158\$1,352\$21,445
3468.340%5.340%\$1,511\$149\$1,362\$20,083
3478.340%5.340%\$1,511\$140\$1,371\$18,712
3488.340%5.340%\$1,511\$130\$1,381\$17,331
Year 29  \$18,130\$2,175\$15,954
3498.340%5.340%\$1,511\$120\$1,390\$15,941
3508.340%5.340%\$1,511\$111\$1,400\$14,541
3518.340%5.340%\$1,511\$101\$1,410\$13,131
3528.340%5.340%\$1,511\$91\$1,420\$11,712
3538.340%5.340%\$1,511\$81\$1,429\$10,282
3548.340%5.340%\$1,511\$71\$1,439\$8,843
3558.340%5.340%\$1,511\$61\$1,449\$7,394
3568.340%5.340%\$1,511\$51\$1,459\$5,934
3578.340%5.340%\$1,511\$41\$1,470\$4,465
3588.340%5.340%\$1,511\$31\$1,480\$2,985
3598.340%5.340%\$1,511\$21\$1,490\$1,495
3608.340%5.340%\$1,505\$10\$1,495\$0
Year 30  \$18,124\$793\$17,331
Grand
Total
\$541,186 \$341,186 \$200,000

Mortgage Calculator - Help

Amortization Schedule
The amortization schedule show you how monthly principal and interest payment and principal balances change over the life of your loan.
Floor Rate
Floor rate is the minimum interest rate for an adjustable rate mortgage (ARM).
Index Rate
Rate Adjustment on ARMs are based on the index rate, the margin, the adjustment schedule, interest rate caps, and floor rate specified in your loan documents. Index rates change over time. They should be published and widely available. Common indexes used for setting mortgage rates have include the Prime Rate, Libor (London Interbank Offer Rate) and U.S. Treasury Rates.
Interest
The portion of your mortgage payment that is due to the interest rate being applied to the principal balance. The Total Interest for a mortgage is the sum of all interest paid over the life of a loan.
The interest rate changes on an adjustable rate mortage (ARM) during adjustment periods specified in your loan documents. Your interest rate may have a fixed period where it does not change followed by adjustements on a regularly scheduled basis. For example, the interest rate on a mortgage could be fixed for 2 years followed by adjustments every 6 months.
Interest Rate Caps
Limits how much your interest rate can be increased during each adjustment period for an ARM. The cap for the first adjustment period may be different than the cap on subsequent adjustments. There also may be a maximim overall cap on interest rate increases during the life of your loan.
Interest Rate Scenarios
To decide if an adjustable rate mortgage is right for you, you should how changes in interest rates will effect the mortgage. The adjustable rate mortgage calculator shows you how your payment changes in the best case where rates are set at the minimum for your mortgage, the worst case where rates are set at the maximum for your mortgage, and the stable case where rates remain constant for your mortgage.
Loan Amount
The initial principal balance or your mortgage at closing.
Margin
When an ARM adjusts the margin is added to the index rate to help determine your interest rate. Interest rate caps and the floor rate for your mortgage may limit how much your actual interest rate changes. The margin typically is fixed for the life of the loan. It should be clearly specified in your loan documents.
Payment Shock
Occurs when the required minimum payment for a mortgage increases significantly. This can occur on adjustable rate mortgage when interest rates rise sharply, on interest-only mortgages when the interest-only period ends, and on balloon mortgages when the balloon payment is due.
Principal
The portion of your mortgage payment that is used to pay down the current balance of your mortgage. The principal balance represents how much you owe on the mortgage.
Start Rate
The initial interest rate on an Adjustable Rate Mortgage.
Term
The amortization term is one of the key factors that determine your required mortgage payment. Your required mortgage payment for fully amortizing mortgages is the amount that would result in the mortgage being closest to being paid off by the end of the amortization term. Longer amortization terms result in lower required mortgage payments for fully amortizating mortgages, all other things being equal.