Interest-Only 3/1 ARM

Here we look at a 3/1 ARM with an interest only period that matches the 3 year fixed period.

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
Assuming that the index rate remains unchanged throughout the life of the mortgage, after 3 years the principal balance will remains at the original loan amount and more than \$12,000 per year will have been paid in interest. At the beginning of year 4 the loan is fully amortized and the minimum monthly payment increases by \$211 or 21%.
Stable
MonthInterest
Rate
Index
Rate
Payment Interest Principal Balance
16.500%5.200%\$1,002\$1,002\$0\$185,000
26.500%5.200%\$1,002\$1,002\$0\$185,000
36.500%5.200%\$1,002\$1,002\$0\$185,000
46.500%5.200%\$1,002\$1,002\$0\$185,000
56.500%5.200%\$1,002\$1,002\$0\$185,000
66.500%5.200%\$1,002\$1,002\$0\$185,000
76.500%5.200%\$1,002\$1,002\$0\$185,000
86.500%5.200%\$1,002\$1,002\$0\$185,000
96.500%5.200%\$1,002\$1,002\$0\$185,000
106.500%5.200%\$1,002\$1,002\$0\$185,000
116.500%5.200%\$1,002\$1,002\$0\$185,000
126.500%5.200%\$1,002\$1,002\$0\$185,000
Year 1  \$12,025\$12,025\$0
136.500%5.200%\$1,002\$1,002\$0\$185,000
146.500%5.200%\$1,002\$1,002\$0\$185,000
156.500%5.200%\$1,002\$1,002\$0\$185,000
166.500%5.200%\$1,002\$1,002\$0\$185,000
176.500%5.200%\$1,002\$1,002\$0\$185,000
186.500%5.200%\$1,002\$1,002\$0\$185,000
196.500%5.200%\$1,002\$1,002\$0\$185,000
206.500%5.200%\$1,002\$1,002\$0\$185,000
216.500%5.200%\$1,002\$1,002\$0\$185,000
226.500%5.200%\$1,002\$1,002\$0\$185,000
236.500%5.200%\$1,002\$1,002\$0\$185,000
246.500%5.200%\$1,002\$1,002\$0\$185,000
Year 2  \$12,025\$12,025\$0
256.500%5.200%\$1,002\$1,002\$0\$185,000
266.500%5.200%\$1,002\$1,002\$0\$185,000
276.500%5.200%\$1,002\$1,002\$0\$185,000
286.500%5.200%\$1,002\$1,002\$0\$185,000
296.500%5.200%\$1,002\$1,002\$0\$185,000
306.500%5.200%\$1,002\$1,002\$0\$185,000
316.500%5.200%\$1,002\$1,002\$0\$185,000
326.500%5.200%\$1,002\$1,002\$0\$185,000
336.500%5.200%\$1,002\$1,002\$0\$185,000
346.500%5.200%\$1,002\$1,002\$0\$185,000
356.500%5.200%\$1,002\$1,002\$0\$185,000
366.500%5.200%\$1,002\$1,002\$0\$185,000
Year 3  \$12,025\$12,025\$0
376.500%5.200%\$1,213\$1,002\$211\$184,789
386.500%5.200%\$1,213\$1,001\$212\$184,577
396.500%5.200%\$1,213\$1,000\$213\$184,364
406.500%5.200%\$1,213\$999\$214\$184,150
416.500%5.200%\$1,213\$997\$215\$183,935
426.500%5.200%\$1,213\$996\$216\$183,719
436.500%5.200%\$1,213\$995\$218\$183,501
446.500%5.200%\$1,213\$994\$219\$183,282
456.500%5.200%\$1,213\$993\$220\$183,062
466.500%5.200%\$1,213\$992\$221\$182,841
476.500%5.200%\$1,213\$990\$222\$182,619
486.500%5.200%\$1,213\$989\$224\$182,395
Year 4  \$14,553\$11,948\$2,605
496.500%5.200%\$1,213\$988\$225\$182,170
506.500%5.200%\$1,213\$987\$226\$181,944
516.500%5.200%\$1,213\$986\$227\$181,717
526.500%5.200%\$1,213\$984\$228\$181,488
536.500%5.200%\$1,213\$983\$230\$181,259
546.500%5.200%\$1,213\$982\$231\$181,028
556.500%5.200%\$1,213\$981\$232\$180,795
566.500%5.200%\$1,213\$979\$233\$180,562
576.500%5.200%\$1,213\$978\$235\$180,327
586.500%5.200%\$1,213\$977\$236\$180,091
596.500%5.200%\$1,213\$975\$237\$179,854
606.500%5.200%\$1,213\$974\$239\$179,615
Year 5  \$14,553\$11,774\$2,780
616.500%5.200%\$1,213\$973\$240\$179,376
626.500%5.200%\$1,213\$972\$241\$179,134
636.500%5.200%\$1,213\$970\$242\$178,892
646.500%5.200%\$1,213\$969\$244\$178,648
656.500%5.200%\$1,213\$968\$245\$178,403
666.500%5.200%\$1,213\$966\$246\$178,157
676.500%5.200%\$1,213\$965\$248\$177,909
686.500%5.200%\$1,213\$964\$249\$177,660
696.500%5.200%\$1,213\$962\$250\$177,409
706.500%5.200%\$1,213\$961\$252\$177,157
716.500%5.200%\$1,213\$960\$253\$176,904
726.500%5.200%\$1,213\$958\$255\$176,650
Year 6  \$14,553\$11,588\$2,966
736.500%5.200%\$1,213\$957\$256\$176,394
746.500%5.200%\$1,213\$955\$257\$176,136
756.500%5.200%\$1,213\$954\$259\$175,878
766.500%5.200%\$1,213\$953\$260\$175,618
776.500%5.200%\$1,213\$951\$262\$175,356
786.500%5.200%\$1,213\$950\$263\$175,093
796.500%5.200%\$1,213\$948\$264\$174,829
806.500%5.200%\$1,213\$947\$266\$174,563
816.500%5.200%\$1,213\$946\$267\$174,296
826.500%5.200%\$1,213\$944\$269\$174,027
836.500%5.200%\$1,213\$943\$270\$173,757
846.500%5.200%\$1,213\$941\$272\$173,485
Year 7  \$14,553\$11,389\$3,164
856.500%5.200%\$1,213\$940\$273\$173,212
866.500%5.200%\$1,213\$938\$275\$172,938
876.500%5.200%\$1,213\$937\$276\$172,662
886.500%5.200%\$1,213\$935\$278\$172,384
896.500%5.200%\$1,213\$934\$279\$172,105
906.500%5.200%\$1,213\$932\$281\$171,825
916.500%5.200%\$1,213\$931\$282\$171,543
926.500%5.200%\$1,213\$929\$284\$171,259
936.500%5.200%\$1,213\$928\$285\$170,974
946.500%5.200%\$1,213\$926\$287\$170,687
956.500%5.200%\$1,213\$925\$288\$170,399
966.500%5.200%\$1,213\$923\$290\$170,109
Year 8  \$14,553\$11,177\$3,376
976.500%5.200%\$1,213\$921\$291\$169,818
986.500%5.200%\$1,213\$920\$293\$169,525
996.500%5.200%\$1,213\$918\$295\$169,230
1006.500%5.200%\$1,213\$917\$296\$168,934
1016.500%5.200%\$1,213\$915\$298\$168,637
1026.500%5.200%\$1,213\$913\$299\$168,337
1036.500%5.200%\$1,213\$912\$301\$168,036
1046.500%5.200%\$1,213\$910\$303\$167,734
1056.500%5.200%\$1,213\$909\$304\$167,429
1066.500%5.200%\$1,213\$907\$306\$167,124
1076.500%5.200%\$1,213\$905\$308\$166,816
1086.500%5.200%\$1,213\$904\$309\$166,507
Year 9  \$14,553\$10,951\$3,602
1096.500%5.200%\$1,213\$902\$311\$166,196
1106.500%5.200%\$1,213\$900\$313\$165,883
1116.500%5.200%\$1,213\$899\$314\$165,569
1126.500%5.200%\$1,213\$897\$316\$165,253
1136.500%5.200%\$1,213\$895\$318\$164,936
1146.500%5.200%\$1,213\$893\$319\$164,616
1156.500%5.200%\$1,213\$892\$321\$164,295
1166.500%5.200%\$1,213\$890\$323\$163,972
1176.500%5.200%\$1,213\$888\$325\$163,648
1186.500%5.200%\$1,213\$886\$326\$163,321
1196.500%5.200%\$1,213\$885\$328\$162,993
1206.500%5.200%\$1,213\$883\$330\$162,663
Year 10  \$14,553\$10,710\$3,844
1216.500%5.200%\$1,213\$881\$332\$162,332
1226.500%5.200%\$1,213\$879\$333\$161,998
1236.500%5.200%\$1,213\$877\$335\$161,663
1246.500%5.200%\$1,213\$876\$337\$161,326
1256.500%5.200%\$1,213\$874\$339\$160,987
1266.500%5.200%\$1,213\$872\$341\$160,646
1276.500%5.200%\$1,213\$870\$343\$160,303
1286.500%5.200%\$1,213\$868\$344\$159,959
1296.500%5.200%\$1,213\$866\$346\$159,613
1306.500%5.200%\$1,213\$865\$348\$159,264
1316.500%5.200%\$1,213\$863\$350\$158,914
1326.500%5.200%\$1,213\$861\$352\$158,562
Year 11  \$14,553\$10,452\$4,101
1336.500%5.200%\$1,213\$859\$354\$158,208
1346.500%5.200%\$1,213\$857\$356\$157,853
1356.500%5.200%\$1,213\$855\$358\$157,495
1366.500%5.200%\$1,213\$853\$360\$157,135
1376.500%5.200%\$1,213\$851\$362\$156,774
1386.500%5.200%\$1,213\$849\$364\$156,410
1396.500%5.200%\$1,213\$847\$366\$156,044
1406.500%5.200%\$1,213\$845\$368\$155,677
1416.500%5.200%\$1,213\$843\$370\$155,307
1426.500%5.200%\$1,213\$841\$372\$154,936
1436.500%5.200%\$1,213\$839\$374\$154,562
1446.500%5.200%\$1,213\$837\$376\$154,187
Year 12  \$14,553\$10,178\$4,376
1456.500%5.200%\$1,213\$835\$378\$153,809
1466.500%5.200%\$1,213\$833\$380\$153,429
1476.500%5.200%\$1,213\$831\$382\$153,048
1486.500%5.200%\$1,213\$829\$384\$152,664
1496.500%5.200%\$1,213\$827\$386\$152,278
1506.500%5.200%\$1,213\$825\$388\$151,890
1516.500%5.200%\$1,213\$823\$390\$151,500
1526.500%5.200%\$1,213\$821\$392\$151,108
1536.500%5.200%\$1,213\$818\$394\$150,714
1546.500%5.200%\$1,213\$816\$396\$150,317
1556.500%5.200%\$1,213\$814\$399\$149,919
1566.500%5.200%\$1,213\$812\$401\$149,518
Year 13  \$14,553\$9,885\$4,669
1576.500%5.200%\$1,213\$810\$403\$149,115
1586.500%5.200%\$1,213\$808\$405\$148,710
1596.500%5.200%\$1,213\$806\$407\$148,303
1606.500%5.200%\$1,213\$803\$409\$147,893
1616.500%5.200%\$1,213\$801\$412\$147,482
1626.500%5.200%\$1,213\$799\$414\$147,068
1636.500%5.200%\$1,213\$797\$416\$146,652
1646.500%5.200%\$1,213\$794\$418\$146,233
1656.500%5.200%\$1,213\$792\$421\$145,812
1666.500%5.200%\$1,213\$790\$423\$145,389
1676.500%5.200%\$1,213\$788\$425\$144,964
1686.500%5.200%\$1,213\$785\$428\$144,537
Year 14  \$14,553\$9,572\$4,981
1696.500%5.200%\$1,213\$783\$430\$144,107
1706.500%5.200%\$1,213\$781\$432\$143,675
1716.500%5.200%\$1,213\$778\$435\$143,240
1726.500%5.200%\$1,213\$776\$437\$142,803
1736.500%5.200%\$1,213\$774\$439\$142,364
1746.500%5.200%\$1,213\$771\$442\$141,922
1756.500%5.200%\$1,213\$769\$444\$141,478
1766.500%5.200%\$1,213\$766\$446\$141,032
1776.500%5.200%\$1,213\$764\$449\$140,583
1786.500%5.200%\$1,213\$761\$451\$140,132
1796.500%5.200%\$1,213\$759\$454\$139,678
1806.500%5.200%\$1,213\$757\$456\$139,222
Year 15  \$14,553\$9,238\$5,315
1816.500%5.200%\$1,213\$754\$459\$138,763
1826.500%5.200%\$1,213\$752\$461\$138,302
1836.500%5.200%\$1,213\$749\$464\$137,838
1846.500%5.200%\$1,213\$747\$466\$137,372
1856.500%5.200%\$1,213\$744\$469\$136,903
1866.500%5.200%\$1,213\$742\$471\$136,432
1876.500%5.200%\$1,213\$739\$474\$135,958
1886.500%5.200%\$1,213\$736\$476\$135,482
1896.500%5.200%\$1,213\$734\$479\$135,003
1906.500%5.200%\$1,213\$731\$482\$134,522
1916.500%5.200%\$1,213\$729\$484\$134,038
1926.500%5.200%\$1,213\$726\$487\$133,551
Year 16  \$14,553\$8,882\$5,671
1936.500%5.200%\$1,213\$723\$489\$133,061
1946.500%5.200%\$1,213\$721\$492\$132,569
1956.500%5.200%\$1,213\$718\$495\$132,075
1966.500%5.200%\$1,213\$715\$497\$131,577
1976.500%5.200%\$1,213\$713\$500\$131,077
1986.500%5.200%\$1,213\$710\$503\$130,574
1996.500%5.200%\$1,213\$707\$506\$130,069
2006.500%5.200%\$1,213\$705\$508\$129,561
2016.500%5.200%\$1,213\$702\$511\$129,050
2026.500%5.200%\$1,213\$699\$514\$128,536
2036.500%5.200%\$1,213\$696\$517\$128,019
2046.500%5.200%\$1,213\$693\$519\$127,500
Year 17  \$14,553\$8,503\$6,051
2056.500%5.200%\$1,213\$691\$522\$126,978
2066.500%5.200%\$1,213\$688\$525\$126,453
2076.500%5.200%\$1,213\$685\$528\$125,925
2086.500%5.200%\$1,213\$682\$531\$125,394
2096.500%5.200%\$1,213\$679\$534\$124,861
2106.500%5.200%\$1,213\$676\$536\$124,324
2116.500%5.200%\$1,213\$673\$539\$123,785
2126.500%5.200%\$1,213\$670\$542\$123,243
2136.500%5.200%\$1,213\$668\$545\$122,698
2146.500%5.200%\$1,213\$665\$548\$122,149
2156.500%5.200%\$1,213\$662\$551\$121,598
2166.500%5.200%\$1,213\$659\$554\$121,044
Year 18  \$14,553\$8,097\$6,456
2176.500%5.200%\$1,213\$656\$557\$120,487
2186.500%5.200%\$1,213\$653\$560\$119,927
2196.500%5.200%\$1,213\$650\$563\$119,364
2206.500%5.200%\$1,213\$647\$566\$118,797
2216.500%5.200%\$1,213\$643\$569\$118,228
2226.500%5.200%\$1,213\$640\$572\$117,656
2236.500%5.200%\$1,213\$637\$575\$117,080
2246.500%5.200%\$1,213\$634\$579\$116,502
2256.500%5.200%\$1,213\$631\$582\$115,920
2266.500%5.200%\$1,213\$628\$585\$115,335
2276.500%5.200%\$1,213\$625\$588\$114,747
2286.500%5.200%\$1,213\$622\$591\$114,156
Year 19  \$14,553\$7,665\$6,888
2296.500%5.200%\$1,213\$618\$594\$113,561
2306.500%5.200%\$1,213\$615\$598\$112,964
2316.500%5.200%\$1,213\$612\$601\$112,363
2326.500%5.200%\$1,213\$609\$604\$111,759
2336.500%5.200%\$1,213\$605\$607\$111,151
2346.500%5.200%\$1,213\$602\$611\$110,541
2356.500%5.200%\$1,213\$599\$614\$109,927
2366.500%5.200%\$1,213\$595\$617\$109,309
2376.500%5.200%\$1,213\$592\$621\$108,689
2386.500%5.200%\$1,213\$589\$624\$108,064
2396.500%5.200%\$1,213\$585\$627\$107,437
2406.500%5.200%\$1,213\$582\$631\$106,806
Year 20  \$14,553\$7,204\$7,350
2416.500%5.200%\$1,213\$579\$634\$106,172
2426.500%5.200%\$1,213\$575\$638\$105,534
2436.500%5.200%\$1,213\$572\$641\$104,893
2446.500%5.200%\$1,213\$568\$645\$104,249
2456.500%5.200%\$1,213\$565\$648\$103,600
2466.500%5.200%\$1,213\$561\$652\$102,949
2476.500%5.200%\$1,213\$558\$655\$102,294
2486.500%5.200%\$1,213\$554\$659\$101,635
2496.500%5.200%\$1,213\$551\$662\$100,973
2506.500%5.200%\$1,213\$547\$666\$100,307
2516.500%5.200%\$1,213\$543\$669\$99,637
2526.500%5.200%\$1,213\$540\$673\$98,964
Year 21  \$14,553\$6,712\$7,842
2536.500%5.200%\$1,213\$536\$677\$98,288
2546.500%5.200%\$1,213\$532\$680\$97,607
2556.500%5.200%\$1,213\$529\$684\$96,923
2566.500%5.200%\$1,213\$525\$688\$96,235
2576.500%5.200%\$1,213\$521\$692\$95,544
2586.500%5.200%\$1,213\$518\$695\$94,849
2596.500%5.200%\$1,213\$514\$699\$94,150
2606.500%5.200%\$1,213\$510\$703\$93,447
2616.500%5.200%\$1,213\$506\$707\$92,740
2626.500%5.200%\$1,213\$502\$710\$92,030
2636.500%5.200%\$1,213\$498\$714\$91,315
2646.500%5.200%\$1,213\$495\$718\$90,597
Year 22  \$14,553\$6,186\$8,367
2656.500%5.200%\$1,213\$491\$722\$89,875
2666.500%5.200%\$1,213\$487\$726\$89,149
2676.500%5.200%\$1,213\$483\$730\$88,419
2686.500%5.200%\$1,213\$479\$734\$87,686
2696.500%5.200%\$1,213\$475\$738\$86,948
2706.500%5.200%\$1,213\$471\$742\$86,206
2716.500%5.200%\$1,213\$467\$746\$85,460
2726.500%5.200%\$1,213\$463\$750\$84,710
2736.500%5.200%\$1,213\$459\$754\$83,956
2746.500%5.200%\$1,213\$455\$758\$83,198
2756.500%5.200%\$1,213\$451\$762\$82,436
2766.500%5.200%\$1,213\$447\$766\$81,670
Year 23  \$14,553\$5,626\$8,927
2776.500%5.200%\$1,213\$442\$770\$80,900
2786.500%5.200%\$1,213\$438\$775\$80,125
2796.500%5.200%\$1,213\$434\$779\$79,346
2806.500%5.200%\$1,213\$430\$783\$78,563
2816.500%5.200%\$1,213\$426\$787\$77,776
2826.500%5.200%\$1,213\$421\$791\$76,984
2836.500%5.200%\$1,213\$417\$796\$76,189
2846.500%5.200%\$1,213\$413\$800\$75,389
2856.500%5.200%\$1,213\$408\$804\$74,584
2866.500%5.200%\$1,213\$404\$809\$73,775
2876.500%5.200%\$1,213\$400\$813\$72,962
2886.500%5.200%\$1,213\$395\$818\$72,145
Year 24  \$14,553\$5,028\$9,525
2896.500%5.200%\$1,213\$391\$822\$71,323
2906.500%5.200%\$1,213\$386\$826\$70,496
2916.500%5.200%\$1,213\$382\$831\$69,665
2926.500%5.200%\$1,213\$377\$835\$68,830
2936.500%5.200%\$1,213\$373\$840\$67,990
2946.500%5.200%\$1,213\$368\$844\$67,145
2956.500%5.200%\$1,213\$364\$849\$66,296
2966.500%5.200%\$1,213\$359\$854\$65,443
2976.500%5.200%\$1,213\$354\$858\$64,584
2986.500%5.200%\$1,213\$350\$863\$63,721
2996.500%5.200%\$1,213\$345\$868\$62,854
3006.500%5.200%\$1,213\$340\$872\$61,982
Year 25  \$14,553\$4,390\$10,163
3016.500%5.200%\$1,213\$336\$877\$61,104
3026.500%5.200%\$1,213\$331\$882\$60,223
3036.500%5.200%\$1,213\$326\$887\$59,336
3046.500%5.200%\$1,213\$321\$891\$58,445
3056.500%5.200%\$1,213\$317\$896\$57,548
3066.500%5.200%\$1,213\$312\$901\$56,647
3076.500%5.200%\$1,213\$307\$906\$55,742
3086.500%5.200%\$1,213\$302\$911\$54,831
3096.500%5.200%\$1,213\$297\$916\$53,915
3106.500%5.200%\$1,213\$292\$921\$52,994
3116.500%5.200%\$1,213\$287\$926\$52,068
3126.500%5.200%\$1,213\$282\$931\$51,138
Year 26  \$14,553\$3,710\$10,844
3136.500%5.200%\$1,213\$277\$936\$50,202
3146.500%5.200%\$1,213\$272\$941\$49,261
3156.500%5.200%\$1,213\$267\$946\$48,315
3166.500%5.200%\$1,213\$262\$951\$47,364
3176.500%5.200%\$1,213\$257\$956\$46,408
3186.500%5.200%\$1,213\$251\$961\$45,446
3196.500%5.200%\$1,213\$246\$967\$44,480
3206.500%5.200%\$1,213\$241\$972\$43,508
3216.500%5.200%\$1,213\$236\$977\$42,531
3226.500%5.200%\$1,213\$230\$982\$41,548
3236.500%5.200%\$1,213\$225\$988\$40,561
3246.500%5.200%\$1,213\$220\$993\$39,568
Year 27  \$14,553\$2,983\$11,570
3256.500%5.200%\$1,213\$214\$998\$38,569
3266.500%5.200%\$1,213\$209\$1,004\$37,565
3276.500%5.200%\$1,213\$203\$1,009\$36,556
3286.500%5.200%\$1,213\$198\$1,015\$35,541
3296.500%5.200%\$1,213\$193\$1,020\$34,521
3306.500%5.200%\$1,213\$187\$1,026\$33,495
3316.500%5.200%\$1,213\$181\$1,031\$32,464
3326.500%5.200%\$1,213\$176\$1,037\$31,427
3336.500%5.200%\$1,213\$170\$1,043\$30,384
3346.500%5.200%\$1,213\$165\$1,048\$29,336
3356.500%5.200%\$1,213\$159\$1,054\$28,282
3366.500%5.200%\$1,213\$153\$1,060\$27,223
Year 28  \$14,553\$2,208\$12,345
3376.500%5.200%\$1,213\$147\$1,065\$26,157
3386.500%5.200%\$1,213\$142\$1,071\$25,086
3396.500%5.200%\$1,213\$136\$1,077\$24,009
3406.500%5.200%\$1,213\$130\$1,083\$22,927
3416.500%5.200%\$1,213\$124\$1,089\$21,838
3426.500%5.200%\$1,213\$118\$1,094\$20,744
3436.500%5.200%\$1,213\$112\$1,100\$19,643
3446.500%5.200%\$1,213\$106\$1,106\$18,537
3456.500%5.200%\$1,213\$100\$1,112\$17,424
3466.500%5.200%\$1,213\$94\$1,118\$16,306
3476.500%5.200%\$1,213\$88\$1,124\$15,182
3486.500%5.200%\$1,213\$82\$1,131\$14,051
Year 29  \$14,553\$1,382\$13,172
3496.500%5.200%\$1,213\$76\$1,137\$12,914
3506.500%5.200%\$1,213\$70\$1,143\$11,771
3516.500%5.200%\$1,213\$64\$1,149\$10,622
3526.500%5.200%\$1,213\$58\$1,155\$9,467
3536.500%5.200%\$1,213\$51\$1,162\$8,306
3546.500%5.200%\$1,213\$45\$1,168\$7,138
3556.500%5.200%\$1,213\$39\$1,174\$5,964
3566.500%5.200%\$1,213\$32\$1,180\$4,783
3576.500%5.200%\$1,213\$26\$1,187\$3,596
3586.500%5.200%\$1,213\$19\$1,193\$2,403
3596.500%5.200%\$1,213\$13\$1,200\$1,203
3606.500%5.200%\$1,210\$7\$1,203\$0
Year 30  \$14,550\$500\$14,051
Grand
Total
\$429,013 \$244,013 \$185,000

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.