# 3/1 ARM - Example

A 3/1 ARM usually refers to an adjustable rate mortgage with an interest rate that is fixed for 3 years and adjusts annually after that. The same pattern follows for many other ARMs advertised as N/1 ARMs where N represents the number of years that the interest rate is fixed and the 1 indicates that there will be 1 year between each adjustment.

In this example, we look at a 3/1 ARM for \$260,000 with a starting interest rate of 6.75%. It has a 2% cap on each adjustment. It has no floor rate and a lifetime maximum interest rate of 12.75%. The index and margin are 5.2% and 1.55% respectively.

Use the adjustable rate mortgage calculator to explore how your interest rate, payment, and principal balance on your ARM can change.

If the index rate remains stable over the life of the loan you would end up paying \$347,084 in total interest.
Stable
MonthInterest
Rate
Index
Rate
Payment Interest Principal Balance
16.750%5.200%\$1,686\$1,462\$224\$259,776
26.750%5.200%\$1,686\$1,461\$225\$259,551
36.750%5.200%\$1,686\$1,460\$226\$259,325
46.750%5.200%\$1,686\$1,459\$228\$259,097
56.750%5.200%\$1,686\$1,457\$229\$258,868
66.750%5.200%\$1,686\$1,456\$230\$258,638
76.750%5.200%\$1,686\$1,455\$232\$258,406
86.750%5.200%\$1,686\$1,454\$233\$258,173
96.750%5.200%\$1,686\$1,452\$234\$257,939
106.750%5.200%\$1,686\$1,451\$235\$257,704
116.750%5.200%\$1,686\$1,450\$237\$257,467
126.750%5.200%\$1,686\$1,448\$238\$257,229
Year 1  \$20,236\$17,465\$2,771
136.750%5.200%\$1,686\$1,447\$239\$256,990
146.750%5.200%\$1,686\$1,446\$241\$256,749
156.750%5.200%\$1,686\$1,444\$242\$256,507
166.750%5.200%\$1,686\$1,443\$244\$256,263
176.750%5.200%\$1,686\$1,441\$245\$256,018
186.750%5.200%\$1,686\$1,440\$246\$255,772
196.750%5.200%\$1,686\$1,439\$248\$255,524
206.750%5.200%\$1,686\$1,437\$249\$255,275
216.750%5.200%\$1,686\$1,436\$250\$255,025
226.750%5.200%\$1,686\$1,435\$252\$254,773
236.750%5.200%\$1,686\$1,433\$253\$254,520
246.750%5.200%\$1,686\$1,432\$255\$254,265
Year 2  \$20,236\$17,272\$2,964
256.750%5.200%\$1,686\$1,430\$256\$254,009
266.750%5.200%\$1,686\$1,429\$258\$253,751
276.750%5.200%\$1,686\$1,427\$259\$253,492
286.750%5.200%\$1,686\$1,426\$260\$253,232
296.750%5.200%\$1,686\$1,424\$262\$252,970
306.750%5.200%\$1,686\$1,423\$263\$252,707
316.750%5.200%\$1,686\$1,421\$265\$252,442
326.750%5.200%\$1,686\$1,420\$266\$252,175
336.750%5.200%\$1,686\$1,418\$268\$251,907
346.750%5.200%\$1,686\$1,417\$269\$251,638
356.750%5.200%\$1,686\$1,415\$271\$251,367
366.750%5.200%\$1,686\$1,414\$272\$251,095
Year 3  \$20,236\$17,066\$3,170
376.750%5.200%\$1,686\$1,412\$274\$250,821
386.750%5.200%\$1,686\$1,411\$275\$250,545
396.750%5.200%\$1,686\$1,409\$277\$250,268
406.750%5.200%\$1,686\$1,408\$279\$249,990
416.750%5.200%\$1,686\$1,406\$280\$249,709
426.750%5.200%\$1,686\$1,405\$282\$249,428
436.750%5.200%\$1,686\$1,403\$283\$249,144
446.750%5.200%\$1,686\$1,401\$285\$248,859
456.750%5.200%\$1,686\$1,400\$287\$248,573
466.750%5.200%\$1,686\$1,398\$288\$248,285
476.750%5.200%\$1,686\$1,397\$290\$247,995
486.750%5.200%\$1,686\$1,395\$291\$247,704
Year 4  \$20,236\$16,845\$3,391
496.750%5.200%\$1,686\$1,393\$293\$247,411
506.750%5.200%\$1,686\$1,392\$295\$247,116
516.750%5.200%\$1,686\$1,390\$296\$246,820
526.750%5.200%\$1,686\$1,388\$298\$246,522
536.750%5.200%\$1,686\$1,387\$300\$246,222
546.750%5.200%\$1,686\$1,385\$301\$245,921
556.750%5.200%\$1,686\$1,383\$303\$245,618
566.750%5.200%\$1,686\$1,382\$305\$245,313
576.750%5.200%\$1,686\$1,380\$306\$245,006
586.750%5.200%\$1,686\$1,378\$308\$244,698
596.750%5.200%\$1,686\$1,376\$310\$244,388
606.750%5.200%\$1,686\$1,375\$312\$244,076
Year 5  \$20,236\$16,609\$3,627
616.750%5.200%\$1,686\$1,373\$313\$243,763
626.750%5.200%\$1,686\$1,371\$315\$243,448
636.750%5.200%\$1,686\$1,369\$317\$243,131
646.750%5.200%\$1,686\$1,368\$319\$242,812
656.750%5.200%\$1,686\$1,366\$321\$242,492
666.750%5.200%\$1,686\$1,364\$322\$242,169
676.750%5.200%\$1,686\$1,362\$324\$241,845
686.750%5.200%\$1,686\$1,360\$326\$241,519
696.750%5.200%\$1,686\$1,359\$328\$241,191
706.750%5.200%\$1,686\$1,357\$330\$240,862
716.750%5.200%\$1,686\$1,355\$332\$240,530
726.750%5.200%\$1,686\$1,353\$333\$240,197
Year 6  \$20,236\$16,357\$3,880
736.750%5.200%\$1,686\$1,351\$335\$239,861
746.750%5.200%\$1,686\$1,349\$337\$239,524
756.750%5.200%\$1,686\$1,347\$339\$239,185
766.750%5.200%\$1,686\$1,345\$341\$238,844
776.750%5.200%\$1,686\$1,344\$343\$238,501
786.750%5.200%\$1,686\$1,342\$345\$238,157
796.750%5.200%\$1,686\$1,340\$347\$237,810
806.750%5.200%\$1,686\$1,338\$349\$237,461
816.750%5.200%\$1,686\$1,336\$351\$237,111
826.750%5.200%\$1,686\$1,334\$353\$236,758
836.750%5.200%\$1,686\$1,332\$355\$236,403
846.750%5.200%\$1,686\$1,330\$357\$236,047
Year 7  \$20,236\$16,086\$4,150
856.750%5.200%\$1,686\$1,328\$359\$235,688
866.750%5.200%\$1,686\$1,326\$361\$235,328
876.750%5.200%\$1,686\$1,324\$363\$234,965
886.750%5.200%\$1,686\$1,322\$365\$234,600
896.750%5.200%\$1,686\$1,320\$367\$234,234
906.750%5.200%\$1,686\$1,318\$369\$233,865
916.750%5.200%\$1,686\$1,315\$371\$233,494
926.750%5.200%\$1,686\$1,313\$373\$233,121
936.750%5.200%\$1,686\$1,311\$375\$232,746
946.750%5.200%\$1,686\$1,309\$377\$232,369
956.750%5.200%\$1,686\$1,307\$379\$231,989
966.750%5.200%\$1,686\$1,305\$381\$231,608
Year 8  \$20,236\$15,798\$4,439
976.750%5.200%\$1,686\$1,303\$384\$231,224
986.750%5.200%\$1,686\$1,301\$386\$230,839
996.750%5.200%\$1,686\$1,298\$388\$230,451
1006.750%5.200%\$1,686\$1,296\$390\$230,061
1016.750%5.200%\$1,686\$1,294\$392\$229,669
1026.750%5.200%\$1,686\$1,292\$394\$229,274
1036.750%5.200%\$1,686\$1,290\$397\$228,877
1046.750%5.200%\$1,686\$1,287\$399\$228,478
1056.750%5.200%\$1,686\$1,285\$401\$228,077
1066.750%5.200%\$1,686\$1,283\$403\$227,674
1076.750%5.200%\$1,686\$1,281\$406\$227,268
1086.750%5.200%\$1,686\$1,278\$408\$226,860
Year 9  \$20,236\$15,488\$4,748
1096.750%5.200%\$1,686\$1,276\$410\$226,450
1106.750%5.200%\$1,686\$1,274\$413\$226,037
1116.750%5.200%\$1,686\$1,271\$415\$225,622
1126.750%5.200%\$1,686\$1,269\$417\$225,205
1136.750%5.200%\$1,686\$1,267\$420\$224,786
1146.750%5.200%\$1,686\$1,264\$422\$224,364
1156.750%5.200%\$1,686\$1,262\$424\$223,939
1166.750%5.200%\$1,686\$1,260\$427\$223,513
1176.750%5.200%\$1,686\$1,257\$429\$223,084
1186.750%5.200%\$1,686\$1,255\$432\$222,652
1196.750%5.200%\$1,686\$1,252\$434\$222,218
1206.750%5.200%\$1,686\$1,250\$436\$221,782
Year 10  \$20,236\$15,158\$5,078
1216.750%5.200%\$1,686\$1,248\$439\$221,343
1226.750%5.200%\$1,686\$1,245\$441\$220,902
1236.750%5.200%\$1,686\$1,243\$444\$220,458
1246.750%5.200%\$1,686\$1,240\$446\$220,012
1256.750%5.200%\$1,686\$1,238\$449\$219,563
1266.750%5.200%\$1,686\$1,235\$451\$219,111
1276.750%5.200%\$1,686\$1,232\$454\$218,658
1286.750%5.200%\$1,686\$1,230\$456\$218,201
1296.750%5.200%\$1,686\$1,227\$459\$217,742
1306.750%5.200%\$1,686\$1,225\$462\$217,281
1316.750%5.200%\$1,686\$1,222\$464\$216,816
1326.750%5.200%\$1,686\$1,220\$467\$216,350
Year 11  \$20,236\$14,804\$5,432
1336.750%5.200%\$1,686\$1,217\$469\$215,880
1346.750%5.200%\$1,686\$1,214\$472\$215,408
1356.750%5.200%\$1,686\$1,212\$475\$214,934
1366.750%5.200%\$1,686\$1,209\$477\$214,456
1376.750%5.200%\$1,686\$1,206\$480\$213,976
1386.750%5.200%\$1,686\$1,204\$483\$213,493
1396.750%5.200%\$1,686\$1,201\$485\$213,008
1406.750%5.200%\$1,686\$1,198\$488\$212,520
1416.750%5.200%\$1,686\$1,195\$491\$212,029
1426.750%5.200%\$1,686\$1,193\$494\$211,535
1436.750%5.200%\$1,686\$1,190\$496\$211,039
1446.750%5.200%\$1,686\$1,187\$499\$210,539
Year 12  \$20,236\$14,426\$5,810
1456.750%5.200%\$1,686\$1,184\$502\$210,037
1466.750%5.200%\$1,686\$1,181\$505\$209,532
1476.750%5.200%\$1,686\$1,179\$508\$209,025
1486.750%5.200%\$1,686\$1,176\$511\$208,514
1496.750%5.200%\$1,686\$1,173\$513\$208,001
1506.750%5.200%\$1,686\$1,170\$516\$207,484
1516.750%5.200%\$1,686\$1,167\$519\$206,965
1526.750%5.200%\$1,686\$1,164\$522\$206,443
1536.750%5.200%\$1,686\$1,161\$525\$205,918
1546.750%5.200%\$1,686\$1,158\$528\$205,390
1556.750%5.200%\$1,686\$1,155\$531\$204,859
1566.750%5.200%\$1,686\$1,152\$534\$204,325
Year 13  \$20,236\$14,021\$6,215
1576.750%5.200%\$1,686\$1,149\$537\$203,788
1586.750%5.200%\$1,686\$1,146\$540\$203,247
1596.750%5.200%\$1,686\$1,143\$543\$202,704
1606.750%5.200%\$1,686\$1,140\$546\$202,158
1616.750%5.200%\$1,686\$1,137\$549\$201,609
1626.750%5.200%\$1,686\$1,134\$552\$201,057
1636.750%5.200%\$1,686\$1,131\$555\$200,501
1646.750%5.200%\$1,686\$1,128\$559\$199,943
1656.750%5.200%\$1,686\$1,125\$562\$199,381
1666.750%5.200%\$1,686\$1,122\$565\$198,816
1676.750%5.200%\$1,686\$1,118\$568\$198,248
1686.750%5.200%\$1,686\$1,115\$571\$197,677
Year 14  \$20,236\$13,589\$6,648
1696.750%5.200%\$1,686\$1,112\$574\$197,103
1706.750%5.200%\$1,686\$1,109\$578\$196,525
1716.750%5.200%\$1,686\$1,105\$581\$195,944
1726.750%5.200%\$1,686\$1,102\$584\$195,360
1736.750%5.200%\$1,686\$1,099\$587\$194,772
1746.750%5.200%\$1,686\$1,096\$591\$194,182
1756.750%5.200%\$1,686\$1,092\$594\$193,587
1766.750%5.200%\$1,686\$1,089\$597\$192,990
1776.750%5.200%\$1,686\$1,086\$601\$192,389
1786.750%5.200%\$1,686\$1,082\$604\$191,785
1796.750%5.200%\$1,686\$1,079\$608\$191,178
1806.750%5.200%\$1,686\$1,075\$611\$190,567
Year 15  \$20,236\$13,126\$7,110
1816.750%5.200%\$1,686\$1,072\$614\$189,952
1826.750%5.200%\$1,686\$1,068\$618\$189,334
1836.750%5.200%\$1,686\$1,065\$621\$188,713
1846.750%5.200%\$1,686\$1,062\$625\$188,088
1856.750%5.200%\$1,686\$1,058\$628\$187,460
1866.750%5.200%\$1,686\$1,054\$632\$186,828
1876.750%5.200%\$1,686\$1,051\$635\$186,192
1886.750%5.200%\$1,686\$1,047\$639\$185,553
1896.750%5.200%\$1,686\$1,044\$643\$184,911
1906.750%5.200%\$1,686\$1,040\$646\$184,264
1916.750%5.200%\$1,686\$1,036\$650\$183,615
1926.750%5.200%\$1,686\$1,033\$654\$182,961
Year 16  \$20,236\$12,631\$7,606
1936.750%5.200%\$1,686\$1,029\$657\$182,304
1946.750%5.200%\$1,686\$1,025\$661\$181,643
1956.750%5.200%\$1,686\$1,022\$665\$180,978
1966.750%5.200%\$1,686\$1,018\$668\$180,310
1976.750%5.200%\$1,686\$1,014\$672\$179,638
1986.750%5.200%\$1,686\$1,010\$676\$178,962
1996.750%5.200%\$1,686\$1,007\$680\$178,282
2006.750%5.200%\$1,686\$1,003\$684\$177,599
2016.750%5.200%\$1,686\$999\$687\$176,911
2026.750%5.200%\$1,686\$995\$691\$176,220
2036.750%5.200%\$1,686\$991\$695\$175,525
2046.750%5.200%\$1,686\$987\$699\$174,826
Year 17  \$20,236\$12,101\$8,135
2056.750%5.200%\$1,686\$983\$703\$174,123
2066.750%5.200%\$1,686\$979\$707\$173,416
2076.750%5.200%\$1,686\$975\$711\$172,705
2086.750%5.200%\$1,686\$971\$715\$171,990
2096.750%5.200%\$1,686\$967\$719\$171,271
2106.750%5.200%\$1,686\$963\$723\$170,548
2116.750%5.200%\$1,686\$959\$727\$169,821
2126.750%5.200%\$1,686\$955\$731\$169,090
2136.750%5.200%\$1,686\$951\$735\$168,355
2146.750%5.200%\$1,686\$947\$739\$167,616
2156.750%5.200%\$1,686\$943\$744\$166,872
2166.750%5.200%\$1,686\$939\$748\$166,124
Year 18  \$20,236\$11,535\$8,701
2176.750%5.200%\$1,686\$934\$752\$165,373
2186.750%5.200%\$1,686\$930\$756\$164,616
2196.750%5.200%\$1,686\$926\$760\$163,856
2206.750%5.200%\$1,686\$922\$765\$163,091
2216.750%5.200%\$1,686\$917\$769\$162,322
2226.750%5.200%\$1,686\$913\$773\$161,549
2236.750%5.200%\$1,686\$909\$778\$160,771
2246.750%5.200%\$1,686\$904\$782\$159,989
2256.750%5.200%\$1,686\$900\$786\$159,203
2266.750%5.200%\$1,686\$896\$791\$158,412
2276.750%5.200%\$1,686\$891\$795\$157,617
2286.750%5.200%\$1,686\$887\$800\$156,817
Year 19  \$20,236\$10,929\$9,307
2296.750%5.200%\$1,686\$882\$804\$156,013
2306.750%5.200%\$1,686\$878\$809\$155,204
2316.750%5.200%\$1,686\$873\$813\$154,391
2326.750%5.200%\$1,686\$868\$818\$153,573
2336.750%5.200%\$1,686\$864\$823\$152,750
2346.750%5.200%\$1,686\$859\$827\$151,923
2356.750%5.200%\$1,686\$855\$832\$151,091
2366.750%5.200%\$1,686\$850\$836\$150,255
2376.750%5.200%\$1,686\$845\$841\$149,414
2386.750%5.200%\$1,686\$840\$846\$148,568
2396.750%5.200%\$1,686\$836\$851\$147,717
2406.750%5.200%\$1,686\$831\$855\$146,862
Year 20  \$20,236\$10,281\$9,955
2416.750%5.200%\$1,686\$826\$860\$146,001
2426.750%5.200%\$1,686\$821\$865\$145,136
2436.750%5.200%\$1,686\$816\$870\$144,266
2446.750%5.200%\$1,686\$812\$875\$143,391
2456.750%5.200%\$1,686\$807\$880\$142,512
2466.750%5.200%\$1,686\$802\$885\$141,627
2476.750%5.200%\$1,686\$797\$890\$140,737
2486.750%5.200%\$1,686\$792\$895\$139,843
2496.750%5.200%\$1,686\$787\$900\$138,943
2506.750%5.200%\$1,686\$782\$905\$138,038
2516.750%5.200%\$1,686\$776\$910\$137,128
2526.750%5.200%\$1,686\$771\$915\$136,213
Year 21  \$20,236\$9,588\$10,649
2536.750%5.200%\$1,686\$766\$920\$135,293
2546.750%5.200%\$1,686\$761\$925\$134,368
2556.750%5.200%\$1,686\$756\$931\$133,437
2566.750%5.200%\$1,686\$751\$936\$132,501
2576.750%5.200%\$1,686\$745\$941\$131,560
2586.750%5.200%\$1,686\$740\$946\$130,614
2596.750%5.200%\$1,686\$735\$952\$129,662
2606.750%5.200%\$1,686\$729\$957\$128,705
2616.750%5.200%\$1,686\$724\$962\$127,743
2626.750%5.200%\$1,686\$719\$968\$126,775
2636.750%5.200%\$1,686\$713\$973\$125,802
2646.750%5.200%\$1,686\$708\$979\$124,823
Year 22  \$20,236\$8,846\$11,390
2656.750%5.200%\$1,686\$702\$984\$123,839
2666.750%5.200%\$1,686\$697\$990\$122,849
2676.750%5.200%\$1,686\$691\$995\$121,854
2686.750%5.200%\$1,686\$685\$1,001\$120,853
2696.750%5.200%\$1,686\$680\$1,007\$119,846
2706.750%5.200%\$1,686\$674\$1,012\$118,834
2716.750%5.200%\$1,686\$668\$1,018\$117,816
2726.750%5.200%\$1,686\$663\$1,024\$116,792
2736.750%5.200%\$1,686\$657\$1,029\$115,763
2746.750%5.200%\$1,686\$651\$1,035\$114,728
2756.750%5.200%\$1,686\$645\$1,041\$113,687
2766.750%5.200%\$1,686\$639\$1,047\$112,640
Year 23  \$20,236\$8,053\$12,183
2776.750%5.200%\$1,686\$634\$1,053\$111,587
2786.750%5.200%\$1,686\$628\$1,059\$110,528
2796.750%5.200%\$1,686\$622\$1,065\$109,464
2806.750%5.200%\$1,686\$616\$1,071\$108,393
2816.750%5.200%\$1,686\$610\$1,077\$107,317
2826.750%5.200%\$1,686\$604\$1,083\$106,234
2836.750%5.200%\$1,686\$598\$1,089\$105,145
2846.750%5.200%\$1,686\$591\$1,095\$104,050
2856.750%5.200%\$1,686\$585\$1,101\$102,949
2866.750%5.200%\$1,686\$579\$1,107\$101,842
2876.750%5.200%\$1,686\$573\$1,114\$100,728
2886.750%5.200%\$1,686\$567\$1,120\$99,609
Year 24  \$20,236\$7,205\$13,031
2896.750%5.200%\$1,686\$560\$1,126\$98,482
2906.750%5.200%\$1,686\$554\$1,132\$97,350
2916.750%5.200%\$1,686\$548\$1,139\$96,211
2926.750%5.200%\$1,686\$541\$1,145\$95,066
2936.750%5.200%\$1,686\$535\$1,152\$93,915
2946.750%5.200%\$1,686\$528\$1,158\$92,756
2956.750%5.200%\$1,686\$522\$1,165\$91,592
2966.750%5.200%\$1,686\$515\$1,171\$90,421
2976.750%5.200%\$1,686\$509\$1,178\$89,243
2986.750%5.200%\$1,686\$502\$1,184\$88,059
2996.750%5.200%\$1,686\$495\$1,191\$86,868
3006.750%5.200%\$1,686\$489\$1,198\$85,670
Year 25  \$20,236\$6,298\$13,939
3016.750%5.200%\$1,686\$482\$1,204\$84,465
3026.750%5.200%\$1,686\$475\$1,211\$83,254
3036.750%5.200%\$1,686\$468\$1,218\$82,036
3046.750%5.200%\$1,686\$461\$1,225\$80,811
3056.750%5.200%\$1,686\$455\$1,232\$79,579
3066.750%5.200%\$1,686\$448\$1,239\$78,341
3076.750%5.200%\$1,686\$441\$1,246\$77,095
3086.750%5.200%\$1,686\$434\$1,253\$75,842
3096.750%5.200%\$1,686\$427\$1,260\$74,582
3106.750%5.200%\$1,686\$420\$1,267\$73,316
3116.750%5.200%\$1,686\$412\$1,274\$72,042
3126.750%5.200%\$1,686\$405\$1,281\$70,761
Year 26  \$20,236\$5,327\$14,909
3136.750%5.200%\$1,686\$398\$1,288\$69,472
3146.750%5.200%\$1,686\$391\$1,296\$68,177
3156.750%5.200%\$1,686\$383\$1,303\$66,874
3166.750%5.200%\$1,686\$376\$1,310\$65,564
3176.750%5.200%\$1,686\$369\$1,318\$64,246
3186.750%5.200%\$1,686\$361\$1,325\$62,921
3196.750%5.200%\$1,686\$354\$1,332\$61,589
3206.750%5.200%\$1,686\$346\$1,340\$60,249
3216.750%5.200%\$1,686\$339\$1,347\$58,901
3226.750%5.200%\$1,686\$331\$1,355\$57,546
3236.750%5.200%\$1,686\$324\$1,363\$56,184
3246.750%5.200%\$1,686\$316\$1,370\$54,813
Year 27  \$20,236\$4,289\$15,947
3256.750%5.200%\$1,686\$308\$1,378\$53,435
3266.750%5.200%\$1,686\$301\$1,386\$52,049
3276.750%5.200%\$1,686\$293\$1,394\$50,656
3286.750%5.200%\$1,686\$285\$1,401\$49,254
3296.750%5.200%\$1,686\$277\$1,409\$47,845
3306.750%5.200%\$1,686\$269\$1,417\$46,428
3316.750%5.200%\$1,686\$261\$1,425\$45,003
3326.750%5.200%\$1,686\$253\$1,433\$43,569
3336.750%5.200%\$1,686\$245\$1,441\$42,128
3346.750%5.200%\$1,686\$237\$1,449\$40,679
3356.750%5.200%\$1,686\$229\$1,458\$39,221
3366.750%5.200%\$1,686\$221\$1,466\$37,755
Year 28  \$20,236\$3,179\$17,058
3376.750%5.200%\$1,686\$212\$1,474\$36,281
3386.750%5.200%\$1,686\$204\$1,482\$34,799
3396.750%5.200%\$1,686\$196\$1,491\$33,309
3406.750%5.200%\$1,686\$187\$1,499\$31,810
3416.750%5.200%\$1,686\$179\$1,507\$30,302
3426.750%5.200%\$1,686\$170\$1,516\$28,786
3436.750%5.200%\$1,686\$162\$1,524\$27,262
3446.750%5.200%\$1,686\$153\$1,533\$25,729
3456.750%5.200%\$1,686\$145\$1,542\$24,187
3466.750%5.200%\$1,686\$136\$1,550\$22,637
3476.750%5.200%\$1,686\$127\$1,559\$21,078
3486.750%5.200%\$1,686\$119\$1,568\$19,510
Year 29  \$20,236\$1,991\$18,245
3496.750%5.200%\$1,686\$110\$1,577\$17,933
3506.750%5.200%\$1,686\$101\$1,585\$16,348
3516.750%5.200%\$1,686\$92\$1,594\$14,754
3526.750%5.200%\$1,686\$83\$1,603\$13,150
3536.750%5.200%\$1,686\$74\$1,612\$11,538
3546.750%5.200%\$1,686\$65\$1,621\$9,916
3556.750%5.200%\$1,686\$56\$1,631\$8,286
3566.750%5.200%\$1,686\$47\$1,640\$6,646
3576.750%5.200%\$1,686\$37\$1,649\$4,997
3586.750%5.200%\$1,686\$28\$1,658\$3,339
3596.750%5.200%\$1,686\$19\$1,668\$1,671
3606.750%5.200%\$1,681\$9\$1,671\$0
Year 30  \$20,231\$720\$19,510
Grand
Total
\$607,084 \$347,084 \$260,000

## 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.