# Interest-Only 10/1 ARM<

A 10/1 ARM with a 10 year interest only period can be especially attractive to homeowners who plan to sell their home in less than 10 years.

After reviewing this example, use the interest-only mortgage calculator to help you decide if an interest-only mortgage meets your needs.

Interest-Only Calculator
After 10 years the principal balance remains at the original loan amount while \$16,125 per year has been paid in interest. At the beginning of year 11 the loan is fully amortized and if the index rate does not change, the minimum monthly principal and interest payment will go up nearly 30% from \$1,344 to \$1,732.
Stable
MonthInterest
Rate
Index
Rate
Payment Interest Principal Balance
17.500%5.200%\$1,344\$1,344\$0\$215,000
27.500%5.200%\$1,344\$1,344\$0\$215,000
37.500%5.200%\$1,344\$1,344\$0\$215,000
47.500%5.200%\$1,344\$1,344\$0\$215,000
57.500%5.200%\$1,344\$1,344\$0\$215,000
67.500%5.200%\$1,344\$1,344\$0\$215,000
77.500%5.200%\$1,344\$1,344\$0\$215,000
87.500%5.200%\$1,344\$1,344\$0\$215,000
97.500%5.200%\$1,344\$1,344\$0\$215,000
107.500%5.200%\$1,344\$1,344\$0\$215,000
117.500%5.200%\$1,344\$1,344\$0\$215,000
127.500%5.200%\$1,344\$1,344\$0\$215,000
Year 1  \$16,125\$16,125\$0
137.500%5.200%\$1,344\$1,344\$0\$215,000
147.500%5.200%\$1,344\$1,344\$0\$215,000
157.500%5.200%\$1,344\$1,344\$0\$215,000
167.500%5.200%\$1,344\$1,344\$0\$215,000
177.500%5.200%\$1,344\$1,344\$0\$215,000
187.500%5.200%\$1,344\$1,344\$0\$215,000
197.500%5.200%\$1,344\$1,344\$0\$215,000
207.500%5.200%\$1,344\$1,344\$0\$215,000
217.500%5.200%\$1,344\$1,344\$0\$215,000
227.500%5.200%\$1,344\$1,344\$0\$215,000
237.500%5.200%\$1,344\$1,344\$0\$215,000
247.500%5.200%\$1,344\$1,344\$0\$215,000
Year 2  \$16,125\$16,125\$0
257.500%5.200%\$1,344\$1,344\$0\$215,000
267.500%5.200%\$1,344\$1,344\$0\$215,000
277.500%5.200%\$1,344\$1,344\$0\$215,000
287.500%5.200%\$1,344\$1,344\$0\$215,000
297.500%5.200%\$1,344\$1,344\$0\$215,000
307.500%5.200%\$1,344\$1,344\$0\$215,000
317.500%5.200%\$1,344\$1,344\$0\$215,000
327.500%5.200%\$1,344\$1,344\$0\$215,000
337.500%5.200%\$1,344\$1,344\$0\$215,000
347.500%5.200%\$1,344\$1,344\$0\$215,000
357.500%5.200%\$1,344\$1,344\$0\$215,000
367.500%5.200%\$1,344\$1,344\$0\$215,000
Year 3  \$16,125\$16,125\$0
377.500%5.200%\$1,344\$1,344\$0\$215,000
387.500%5.200%\$1,344\$1,344\$0\$215,000
397.500%5.200%\$1,344\$1,344\$0\$215,000
407.500%5.200%\$1,344\$1,344\$0\$215,000
417.500%5.200%\$1,344\$1,344\$0\$215,000
427.500%5.200%\$1,344\$1,344\$0\$215,000
437.500%5.200%\$1,344\$1,344\$0\$215,000
447.500%5.200%\$1,344\$1,344\$0\$215,000
457.500%5.200%\$1,344\$1,344\$0\$215,000
467.500%5.200%\$1,344\$1,344\$0\$215,000
477.500%5.200%\$1,344\$1,344\$0\$215,000
487.500%5.200%\$1,344\$1,344\$0\$215,000
Year 4  \$16,125\$16,125\$0
497.500%5.200%\$1,344\$1,344\$0\$215,000
507.500%5.200%\$1,344\$1,344\$0\$215,000
517.500%5.200%\$1,344\$1,344\$0\$215,000
527.500%5.200%\$1,344\$1,344\$0\$215,000
537.500%5.200%\$1,344\$1,344\$0\$215,000
547.500%5.200%\$1,344\$1,344\$0\$215,000
557.500%5.200%\$1,344\$1,344\$0\$215,000
567.500%5.200%\$1,344\$1,344\$0\$215,000
577.500%5.200%\$1,344\$1,344\$0\$215,000
587.500%5.200%\$1,344\$1,344\$0\$215,000
597.500%5.200%\$1,344\$1,344\$0\$215,000
607.500%5.200%\$1,344\$1,344\$0\$215,000
Year 5  \$16,125\$16,125\$0
617.500%5.200%\$1,344\$1,344\$0\$215,000
627.500%5.200%\$1,344\$1,344\$0\$215,000
637.500%5.200%\$1,344\$1,344\$0\$215,000
647.500%5.200%\$1,344\$1,344\$0\$215,000
657.500%5.200%\$1,344\$1,344\$0\$215,000
667.500%5.200%\$1,344\$1,344\$0\$215,000
677.500%5.200%\$1,344\$1,344\$0\$215,000
687.500%5.200%\$1,344\$1,344\$0\$215,000
697.500%5.200%\$1,344\$1,344\$0\$215,000
707.500%5.200%\$1,344\$1,344\$0\$215,000
717.500%5.200%\$1,344\$1,344\$0\$215,000
727.500%5.200%\$1,344\$1,344\$0\$215,000
Year 6  \$16,125\$16,125\$0
737.500%5.200%\$1,344\$1,344\$0\$215,000
747.500%5.200%\$1,344\$1,344\$0\$215,000
757.500%5.200%\$1,344\$1,344\$0\$215,000
767.500%5.200%\$1,344\$1,344\$0\$215,000
777.500%5.200%\$1,344\$1,344\$0\$215,000
787.500%5.200%\$1,344\$1,344\$0\$215,000
797.500%5.200%\$1,344\$1,344\$0\$215,000
807.500%5.200%\$1,344\$1,344\$0\$215,000
817.500%5.200%\$1,344\$1,344\$0\$215,000
827.500%5.200%\$1,344\$1,344\$0\$215,000
837.500%5.200%\$1,344\$1,344\$0\$215,000
847.500%5.200%\$1,344\$1,344\$0\$215,000
Year 7  \$16,125\$16,125\$0
857.500%5.200%\$1,344\$1,344\$0\$215,000
867.500%5.200%\$1,344\$1,344\$0\$215,000
877.500%5.200%\$1,344\$1,344\$0\$215,000
887.500%5.200%\$1,344\$1,344\$0\$215,000
897.500%5.200%\$1,344\$1,344\$0\$215,000
907.500%5.200%\$1,344\$1,344\$0\$215,000
917.500%5.200%\$1,344\$1,344\$0\$215,000
927.500%5.200%\$1,344\$1,344\$0\$215,000
937.500%5.200%\$1,344\$1,344\$0\$215,000
947.500%5.200%\$1,344\$1,344\$0\$215,000
957.500%5.200%\$1,344\$1,344\$0\$215,000
967.500%5.200%\$1,344\$1,344\$0\$215,000
Year 8  \$16,125\$16,125\$0
977.500%5.200%\$1,344\$1,344\$0\$215,000
987.500%5.200%\$1,344\$1,344\$0\$215,000
997.500%5.200%\$1,344\$1,344\$0\$215,000
1007.500%5.200%\$1,344\$1,344\$0\$215,000
1017.500%5.200%\$1,344\$1,344\$0\$215,000
1027.500%5.200%\$1,344\$1,344\$0\$215,000
1037.500%5.200%\$1,344\$1,344\$0\$215,000
1047.500%5.200%\$1,344\$1,344\$0\$215,000
1057.500%5.200%\$1,344\$1,344\$0\$215,000
1067.500%5.200%\$1,344\$1,344\$0\$215,000
1077.500%5.200%\$1,344\$1,344\$0\$215,000
1087.500%5.200%\$1,344\$1,344\$0\$215,000
Year 9  \$16,125\$16,125\$0
1097.500%5.200%\$1,344\$1,344\$0\$215,000
1107.500%5.200%\$1,344\$1,344\$0\$215,000
1117.500%5.200%\$1,344\$1,344\$0\$215,000
1127.500%5.200%\$1,344\$1,344\$0\$215,000
1137.500%5.200%\$1,344\$1,344\$0\$215,000
1147.500%5.200%\$1,344\$1,344\$0\$215,000
1157.500%5.200%\$1,344\$1,344\$0\$215,000
1167.500%5.200%\$1,344\$1,344\$0\$215,000
1177.500%5.200%\$1,344\$1,344\$0\$215,000
1187.500%5.200%\$1,344\$1,344\$0\$215,000
1197.500%5.200%\$1,344\$1,344\$0\$215,000
1207.500%5.200%\$1,344\$1,344\$0\$215,000
Year 10  \$16,125\$16,125\$0
1217.500%5.200%\$1,732\$1,344\$388\$214,612
1227.500%5.200%\$1,732\$1,341\$391\$214,221
1237.500%5.200%\$1,732\$1,339\$393\$213,828
1247.500%5.200%\$1,732\$1,336\$396\$213,432
1257.500%5.200%\$1,732\$1,334\$398\$213,034
1267.500%5.200%\$1,732\$1,331\$401\$212,634
1277.500%5.200%\$1,732\$1,329\$403\$212,231
1287.500%5.200%\$1,732\$1,326\$406\$211,825
1297.500%5.200%\$1,732\$1,324\$408\$211,417
1307.500%5.200%\$1,732\$1,321\$411\$211,006
1317.500%5.200%\$1,732\$1,319\$413\$210,593
1327.500%5.200%\$1,732\$1,316\$416\$210,177
Year 11  \$20,784\$15,961\$4,823
1337.500%5.200%\$1,732\$1,314\$418\$209,759
1347.500%5.200%\$1,732\$1,311\$421\$209,338
1357.500%5.200%\$1,732\$1,308\$424\$208,914
1367.500%5.200%\$1,732\$1,306\$426\$208,488
1377.500%5.200%\$1,732\$1,303\$429\$208,059
1387.500%5.200%\$1,732\$1,300\$432\$207,627
1397.500%5.200%\$1,732\$1,298\$434\$207,193
1407.500%5.200%\$1,732\$1,295\$437\$206,756
1417.500%5.200%\$1,732\$1,292\$440\$206,316
1427.500%5.200%\$1,732\$1,289\$443\$205,873
1437.500%5.200%\$1,732\$1,287\$445\$205,428
1447.500%5.200%\$1,732\$1,284\$448\$204,980
Year 12  \$20,784\$15,587\$5,197
1457.500%5.200%\$1,732\$1,281\$451\$204,529
1467.500%5.200%\$1,732\$1,278\$454\$204,075
1477.500%5.200%\$1,732\$1,275\$457\$203,619
1487.500%5.200%\$1,732\$1,273\$459\$203,159
1497.500%5.200%\$1,732\$1,270\$462\$202,697
1507.500%5.200%\$1,732\$1,267\$465\$202,232
1517.500%5.200%\$1,732\$1,264\$468\$201,764
1527.500%5.200%\$1,732\$1,261\$471\$201,293
1537.500%5.200%\$1,732\$1,258\$474\$200,819
1547.500%5.200%\$1,732\$1,255\$477\$200,342
1557.500%5.200%\$1,732\$1,252\$480\$199,862
1567.500%5.200%\$1,732\$1,249\$483\$199,379
Year 13  \$20,784\$15,184\$5,601
1577.500%5.200%\$1,732\$1,246\$486\$198,893
1587.500%5.200%\$1,732\$1,243\$489\$198,404
1597.500%5.200%\$1,732\$1,240\$492\$197,912
1607.500%5.200%\$1,732\$1,237\$495\$197,417
1617.500%5.200%\$1,732\$1,234\$498\$196,919
1627.500%5.200%\$1,732\$1,231\$501\$196,418
1637.500%5.200%\$1,732\$1,228\$504\$195,913
1647.500%5.200%\$1,732\$1,224\$508\$195,406
1657.500%5.200%\$1,732\$1,221\$511\$194,895
1667.500%5.200%\$1,732\$1,218\$514\$194,381
1677.500%5.200%\$1,732\$1,215\$517\$193,864
1687.500%5.200%\$1,732\$1,212\$520\$193,343
Year 14  \$20,784\$14,749\$6,036
1697.500%5.200%\$1,732\$1,208\$524\$192,820
1707.500%5.200%\$1,732\$1,205\$527\$192,293
1717.500%5.200%\$1,732\$1,202\$530\$191,763
1727.500%5.200%\$1,732\$1,199\$534\$191,229
1737.500%5.200%\$1,732\$1,195\$537\$190,692
1747.500%5.200%\$1,732\$1,192\$540\$190,152
1757.500%5.200%\$1,732\$1,188\$544\$189,608
1767.500%5.200%\$1,732\$1,185\$547\$189,062
1777.500%5.200%\$1,732\$1,182\$550\$188,511
1787.500%5.200%\$1,732\$1,178\$554\$187,957
1797.500%5.200%\$1,732\$1,175\$557\$187,400
1807.500%5.200%\$1,732\$1,171\$561\$186,839
Year 15  \$20,784\$14,280\$6,504
1817.500%5.200%\$1,732\$1,168\$564\$186,275
1827.500%5.200%\$1,732\$1,164\$568\$185,707
1837.500%5.200%\$1,732\$1,161\$571\$185,136
1847.500%5.200%\$1,732\$1,157\$575\$184,561
1857.500%5.200%\$1,732\$1,154\$579\$183,982
1867.500%5.200%\$1,732\$1,150\$582\$183,400
1877.500%5.200%\$1,732\$1,146\$586\$182,814
1887.500%5.200%\$1,732\$1,143\$589\$182,225
1897.500%5.200%\$1,732\$1,139\$593\$181,632
1907.500%5.200%\$1,732\$1,135\$597\$181,035
1917.500%5.200%\$1,732\$1,131\$601\$180,434
1927.500%5.200%\$1,732\$1,128\$604\$179,830
Year 16  \$20,784\$13,775\$7,009
1937.500%5.200%\$1,732\$1,124\$608\$179,222
1947.500%5.200%\$1,732\$1,120\$612\$178,610
1957.500%5.200%\$1,732\$1,116\$616\$177,994
1967.500%5.200%\$1,732\$1,112\$620\$177,375
1977.500%5.200%\$1,732\$1,109\$623\$176,751
1987.500%5.200%\$1,732\$1,105\$627\$176,124
1997.500%5.200%\$1,732\$1,101\$631\$175,493
2007.500%5.200%\$1,732\$1,097\$635\$174,858
2017.500%5.200%\$1,732\$1,093\$639\$174,218
2027.500%5.200%\$1,732\$1,089\$643\$173,575
2037.500%5.200%\$1,732\$1,085\$647\$172,928
2047.500%5.200%\$1,732\$1,081\$651\$172,277
Year 17  \$20,784\$13,231\$7,553
2057.500%5.200%\$1,732\$1,077\$655\$171,622
2067.500%5.200%\$1,732\$1,073\$659\$170,962
2077.500%5.200%\$1,732\$1,069\$664\$170,299
2087.500%5.200%\$1,732\$1,064\$668\$169,631
2097.500%5.200%\$1,732\$1,060\$672\$168,959
2107.500%5.200%\$1,732\$1,056\$676\$168,283
2117.500%5.200%\$1,732\$1,052\$680\$167,603
2127.500%5.200%\$1,732\$1,048\$685\$166,918
2137.500%5.200%\$1,732\$1,043\$689\$166,230
2147.500%5.200%\$1,732\$1,039\$693\$165,536
2157.500%5.200%\$1,732\$1,035\$697\$164,839
2167.500%5.200%\$1,732\$1,030\$702\$164,137
Year 18  \$20,784\$12,645\$8,140
2177.500%5.200%\$1,732\$1,026\$706\$163,431
2187.500%5.200%\$1,732\$1,021\$711\$162,720
2197.500%5.200%\$1,732\$1,017\$715\$162,005
2207.500%5.200%\$1,732\$1,013\$720\$161,286
2217.500%5.200%\$1,732\$1,008\$724\$160,562
2227.500%5.200%\$1,732\$1,004\$729\$159,833
2237.500%5.200%\$1,732\$999\$733\$159,100
2247.500%5.200%\$1,732\$994\$738\$158,363
2257.500%5.200%\$1,732\$990\$742\$157,620
2267.500%5.200%\$1,732\$985\$747\$156,874
2277.500%5.200%\$1,732\$980\$752\$156,122
2287.500%5.200%\$1,732\$976\$756\$155,366
Year 19  \$20,784\$12,013\$8,772
2297.500%5.200%\$1,732\$971\$761\$154,605
2307.500%5.200%\$1,732\$966\$766\$153,839
2317.500%5.200%\$1,732\$961\$771\$153,068
2327.500%5.200%\$1,732\$957\$775\$152,293
2337.500%5.200%\$1,732\$952\$780\$151,513
2347.500%5.200%\$1,732\$947\$785\$150,728
2357.500%5.200%\$1,732\$942\$790\$149,938
2367.500%5.200%\$1,732\$937\$795\$149,143
2377.500%5.200%\$1,732\$932\$800\$148,343
2387.500%5.200%\$1,732\$927\$805\$147,538
2397.500%5.200%\$1,732\$922\$810\$146,728
2407.500%5.200%\$1,732\$917\$815\$145,913
Year 20  \$20,784\$11,332\$9,452
2417.500%5.200%\$1,732\$912\$820\$145,093
2427.500%5.200%\$1,732\$907\$825\$144,268
2437.500%5.200%\$1,732\$902\$830\$143,438
2447.500%5.200%\$1,732\$896\$836\$142,602
2457.500%5.200%\$1,732\$891\$841\$141,761
2467.500%5.200%\$1,732\$886\$846\$140,915
2477.500%5.200%\$1,732\$881\$851\$140,064
2487.500%5.200%\$1,732\$875\$857\$139,207
2497.500%5.200%\$1,732\$870\$862\$138,345
2507.500%5.200%\$1,732\$865\$867\$137,478
2517.500%5.200%\$1,732\$859\$873\$136,605
2527.500%5.200%\$1,732\$854\$878\$135,727
Year 21  \$20,784\$10,598\$10,186
2537.500%5.200%\$1,732\$848\$884\$134,843
2547.500%5.200%\$1,732\$843\$889\$133,954
2557.500%5.200%\$1,732\$837\$895\$133,059
2567.500%5.200%\$1,732\$832\$900\$132,159
2577.500%5.200%\$1,732\$826\$906\$131,253
2587.500%5.200%\$1,732\$820\$912\$130,341
2597.500%5.200%\$1,732\$815\$917\$129,424
2607.500%5.200%\$1,732\$809\$923\$128,500
2617.500%5.200%\$1,732\$803\$929\$127,572
2627.500%5.200%\$1,732\$797\$935\$126,637
2637.500%5.200%\$1,732\$791\$941\$125,696
2647.500%5.200%\$1,732\$786\$946\$124,750
Year 22  \$20,784\$9,807\$10,977
2657.500%5.200%\$1,732\$780\$952\$123,797
2667.500%5.200%\$1,732\$774\$958\$122,839
2677.500%5.200%\$1,732\$768\$964\$121,875
2687.500%5.200%\$1,732\$762\$970\$120,905
2697.500%5.200%\$1,732\$756\$976\$119,928
2707.500%5.200%\$1,732\$750\$982\$118,946
2717.500%5.200%\$1,732\$743\$989\$117,957
2727.500%5.200%\$1,732\$737\$995\$116,962
2737.500%5.200%\$1,732\$731\$1,001\$115,961
2747.500%5.200%\$1,732\$725\$1,007\$114,954
2757.500%5.200%\$1,732\$718\$1,014\$113,940
2767.500%5.200%\$1,732\$712\$1,020\$112,921
Year 23  \$20,784\$8,955\$11,829
2777.500%5.200%\$1,732\$706\$1,026\$111,894
2787.500%5.200%\$1,732\$699\$1,033\$110,862
2797.500%5.200%\$1,732\$693\$1,039\$109,822
2807.500%5.200%\$1,732\$686\$1,046\$108,777
2817.500%5.200%\$1,732\$680\$1,052\$107,725
2827.500%5.200%\$1,732\$673\$1,059\$106,666
2837.500%5.200%\$1,732\$667\$1,065\$105,600
2847.500%5.200%\$1,732\$660\$1,072\$104,528
2857.500%5.200%\$1,732\$653\$1,079\$103,450
2867.500%5.200%\$1,732\$647\$1,085\$102,364
2877.500%5.200%\$1,732\$640\$1,092\$101,272
2887.500%5.200%\$1,732\$633\$1,099\$100,173
Year 24  \$20,784\$8,037\$12,748
2897.500%5.200%\$1,732\$626\$1,106\$99,067
2907.500%5.200%\$1,732\$619\$1,113\$97,954
2917.500%5.200%\$1,732\$612\$1,120\$96,834
2927.500%5.200%\$1,732\$605\$1,127\$95,707
2937.500%5.200%\$1,732\$598\$1,134\$94,574
2947.500%5.200%\$1,732\$591\$1,141\$93,433
2957.500%5.200%\$1,732\$584\$1,148\$92,285
2967.500%5.200%\$1,732\$577\$1,155\$91,129
2977.500%5.200%\$1,732\$570\$1,162\$89,967
2987.500%5.200%\$1,732\$562\$1,170\$88,797
2997.500%5.200%\$1,732\$555\$1,177\$87,620
3007.500%5.200%\$1,732\$548\$1,184\$86,436
Year 25  \$20,784\$7,047\$13,737
3017.500%5.200%\$1,732\$540\$1,192\$85,244
3027.500%5.200%\$1,732\$533\$1,199\$84,045
3037.500%5.200%\$1,732\$525\$1,207\$82,838
3047.500%5.200%\$1,732\$518\$1,214\$81,624
3057.500%5.200%\$1,732\$510\$1,222\$80,402
3067.500%5.200%\$1,732\$503\$1,230\$79,172
3077.500%5.200%\$1,732\$495\$1,237\$77,935
3087.500%5.200%\$1,732\$487\$1,245\$76,690
3097.500%5.200%\$1,732\$479\$1,253\$75,437
3107.500%5.200%\$1,732\$471\$1,261\$74,177
3117.500%5.200%\$1,732\$464\$1,268\$72,908
3127.500%5.200%\$1,732\$456\$1,276\$71,632
Year 26  \$20,784\$5,981\$14,804
3137.500%5.200%\$1,732\$448\$1,284\$70,348
3147.500%5.200%\$1,732\$440\$1,292\$69,055
3157.500%5.200%\$1,732\$432\$1,300\$67,755
3167.500%5.200%\$1,732\$423\$1,309\$66,446
3177.500%5.200%\$1,732\$415\$1,317\$65,130
3187.500%5.200%\$1,732\$407\$1,325\$63,805
3197.500%5.200%\$1,732\$399\$1,333\$62,471
3207.500%5.200%\$1,732\$390\$1,342\$61,130
3217.500%5.200%\$1,732\$382\$1,350\$59,780
3227.500%5.200%\$1,732\$374\$1,358\$58,421
3237.500%5.200%\$1,732\$365\$1,367\$57,054
3247.500%5.200%\$1,732\$357\$1,375\$55,679
Year 27  \$20,784\$4,831\$15,953
3257.500%5.200%\$1,732\$348\$1,384\$54,295
3267.500%5.200%\$1,732\$339\$1,393\$52,902
3277.500%5.200%\$1,732\$331\$1,401\$51,501
3287.500%5.200%\$1,732\$322\$1,410\$50,091
3297.500%5.200%\$1,732\$313\$1,419\$48,672
3307.500%5.200%\$1,732\$304\$1,428\$47,244
3317.500%5.200%\$1,732\$295\$1,437\$45,807
3327.500%5.200%\$1,732\$286\$1,446\$44,361
3337.500%5.200%\$1,732\$277\$1,455\$42,907
3347.500%5.200%\$1,732\$268\$1,464\$41,443
3357.500%5.200%\$1,732\$259\$1,473\$39,970
3367.500%5.200%\$1,732\$250\$1,482\$38,488
Year 28  \$20,784\$3,593\$17,191
3377.500%5.200%\$1,732\$241\$1,491\$36,996
3387.500%5.200%\$1,732\$231\$1,501\$35,495
3397.500%5.200%\$1,732\$222\$1,510\$33,985
3407.500%5.200%\$1,732\$212\$1,520\$32,466
3417.500%5.200%\$1,732\$203\$1,529\$30,936
3427.500%5.200%\$1,732\$193\$1,539\$29,398
3437.500%5.200%\$1,732\$184\$1,548\$27,849
3447.500%5.200%\$1,732\$174\$1,558\$26,291
3457.500%5.200%\$1,732\$164\$1,568\$24,724
3467.500%5.200%\$1,732\$155\$1,578\$23,146
3477.500%5.200%\$1,732\$145\$1,587\$21,559
3487.500%5.200%\$1,732\$135\$1,597\$19,962
Year 29  \$20,784\$2,258\$18,526
3497.500%5.200%\$1,732\$125\$1,607\$18,354
3507.500%5.200%\$1,732\$115\$1,617\$16,737
3517.500%5.200%\$1,732\$105\$1,627\$15,110
3527.500%5.200%\$1,732\$94\$1,638\$13,472
3537.500%5.200%\$1,732\$84\$1,648\$11,824
3547.500%5.200%\$1,732\$74\$1,658\$10,166
3557.500%5.200%\$1,732\$64\$1,668\$8,498
3567.500%5.200%\$1,732\$53\$1,679\$6,819
3577.500%5.200%\$1,732\$43\$1,689\$5,129
3587.500%5.200%\$1,732\$32\$1,700\$3,429
3597.500%5.200%\$1,732\$21\$1,711\$1,719
3607.500%5.200%\$1,729\$11\$1,719\$0
Year 30  \$20,782\$820\$19,962
Grand
Total
\$576,935 \$361,935 \$215,000

## 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.
Interest Only
Interest-only mortgages allow borrowers to make interest-only payments for a specific period of time. Required mortgage payments can be significantly lower during the interest-only period since the borrower is not required to pay down the principal balance during that time. However, the borrower is taking on more risk since the balance is not being paid down. Interest-Only Mortgages come in a wide variety of types, including both fixed and adjustable rate mortgages.
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.