# Interest-Only 5/1 ARM

Let's explore a 5/1 ARM with a 5 year interest only 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 does not change over the life of the loan, after 5 years the principal balance will remain at the original loan amount while \$12,375 per year will have been paid in interest. At the beginning of year 6 the loan is fully amortized and the minimum monthly payment increases by 22% to \$1,258.
Stable
MonthInterest
Rate
Index
Rate
Payment Interest Principal Balance
16.875%5.200%\$1,031\$1,031\$0\$180,000
26.875%5.200%\$1,031\$1,031\$0\$180,000
36.875%5.200%\$1,031\$1,031\$0\$180,000
46.875%5.200%\$1,031\$1,031\$0\$180,000
56.875%5.200%\$1,031\$1,031\$0\$180,000
66.875%5.200%\$1,031\$1,031\$0\$180,000
76.875%5.200%\$1,031\$1,031\$0\$180,000
86.875%5.200%\$1,031\$1,031\$0\$180,000
96.875%5.200%\$1,031\$1,031\$0\$180,000
106.875%5.200%\$1,031\$1,031\$0\$180,000
116.875%5.200%\$1,031\$1,031\$0\$180,000
126.875%5.200%\$1,031\$1,031\$0\$180,000
Year 1  \$12,375\$12,375\$0
136.875%5.200%\$1,031\$1,031\$0\$180,000
146.875%5.200%\$1,031\$1,031\$0\$180,000
156.875%5.200%\$1,031\$1,031\$0\$180,000
166.875%5.200%\$1,031\$1,031\$0\$180,000
176.875%5.200%\$1,031\$1,031\$0\$180,000
186.875%5.200%\$1,031\$1,031\$0\$180,000
196.875%5.200%\$1,031\$1,031\$0\$180,000
206.875%5.200%\$1,031\$1,031\$0\$180,000
216.875%5.200%\$1,031\$1,031\$0\$180,000
226.875%5.200%\$1,031\$1,031\$0\$180,000
236.875%5.200%\$1,031\$1,031\$0\$180,000
246.875%5.200%\$1,031\$1,031\$0\$180,000
Year 2  \$12,375\$12,375\$0
256.875%5.200%\$1,031\$1,031\$0\$180,000
266.875%5.200%\$1,031\$1,031\$0\$180,000
276.875%5.200%\$1,031\$1,031\$0\$180,000
286.875%5.200%\$1,031\$1,031\$0\$180,000
296.875%5.200%\$1,031\$1,031\$0\$180,000
306.875%5.200%\$1,031\$1,031\$0\$180,000
316.875%5.200%\$1,031\$1,031\$0\$180,000
326.875%5.200%\$1,031\$1,031\$0\$180,000
336.875%5.200%\$1,031\$1,031\$0\$180,000
346.875%5.200%\$1,031\$1,031\$0\$180,000
356.875%5.200%\$1,031\$1,031\$0\$180,000
366.875%5.200%\$1,031\$1,031\$0\$180,000
Year 3  \$12,375\$12,375\$0
376.875%5.200%\$1,031\$1,031\$0\$180,000
386.875%5.200%\$1,031\$1,031\$0\$180,000
396.875%5.200%\$1,031\$1,031\$0\$180,000
406.875%5.200%\$1,031\$1,031\$0\$180,000
416.875%5.200%\$1,031\$1,031\$0\$180,000
426.875%5.200%\$1,031\$1,031\$0\$180,000
436.875%5.200%\$1,031\$1,031\$0\$180,000
446.875%5.200%\$1,031\$1,031\$0\$180,000
456.875%5.200%\$1,031\$1,031\$0\$180,000
466.875%5.200%\$1,031\$1,031\$0\$180,000
476.875%5.200%\$1,031\$1,031\$0\$180,000
486.875%5.200%\$1,031\$1,031\$0\$180,000
Year 4  \$12,375\$12,375\$0
496.875%5.200%\$1,031\$1,031\$0\$180,000
506.875%5.200%\$1,031\$1,031\$0\$180,000
516.875%5.200%\$1,031\$1,031\$0\$180,000
526.875%5.200%\$1,031\$1,031\$0\$180,000
536.875%5.200%\$1,031\$1,031\$0\$180,000
546.875%5.200%\$1,031\$1,031\$0\$180,000
556.875%5.200%\$1,031\$1,031\$0\$180,000
566.875%5.200%\$1,031\$1,031\$0\$180,000
576.875%5.200%\$1,031\$1,031\$0\$180,000
586.875%5.200%\$1,031\$1,031\$0\$180,000
596.875%5.200%\$1,031\$1,031\$0\$180,000
606.875%5.200%\$1,031\$1,031\$0\$180,000
Year 5  \$12,375\$12,375\$0
616.875%5.200%\$1,258\$1,031\$227\$179,773
626.875%5.200%\$1,258\$1,030\$228\$179,545
636.875%5.200%\$1,258\$1,029\$229\$179,316
646.875%5.200%\$1,258\$1,027\$231\$179,086
656.875%5.200%\$1,258\$1,026\$232\$178,854
666.875%5.200%\$1,258\$1,025\$233\$178,621
676.875%5.200%\$1,258\$1,023\$235\$178,386
686.875%5.200%\$1,258\$1,022\$236\$178,150
696.875%5.200%\$1,258\$1,021\$237\$177,913
706.875%5.200%\$1,258\$1,019\$239\$177,674
716.875%5.200%\$1,258\$1,018\$240\$177,434
726.875%5.200%\$1,258\$1,017\$241\$177,193
Year 6  \$15,095\$12,288\$2,807
736.875%5.200%\$1,258\$1,015\$243\$176,950
746.875%5.200%\$1,258\$1,014\$244\$176,706
756.875%5.200%\$1,258\$1,012\$246\$176,461
766.875%5.200%\$1,258\$1,011\$247\$176,214
776.875%5.200%\$1,258\$1,010\$248\$175,965
786.875%5.200%\$1,258\$1,008\$250\$175,716
796.875%5.200%\$1,258\$1,007\$251\$175,464
806.875%5.200%\$1,258\$1,005\$253\$175,212
816.875%5.200%\$1,258\$1,004\$254\$174,958
826.875%5.200%\$1,258\$1,002\$256\$174,702
836.875%5.200%\$1,258\$1,001\$257\$174,445
846.875%5.200%\$1,258\$999\$258\$174,187
Year 7  \$15,095\$12,088\$3,006
856.875%5.200%\$1,258\$998\$260\$173,927
866.875%5.200%\$1,258\$996\$261\$173,665
876.875%5.200%\$1,258\$995\$263\$173,402
886.875%5.200%\$1,258\$993\$264\$173,138
896.875%5.200%\$1,258\$992\$266\$172,872
906.875%5.200%\$1,258\$990\$267\$172,605
916.875%5.200%\$1,258\$989\$269\$172,336
926.875%5.200%\$1,258\$987\$271\$172,065
936.875%5.200%\$1,258\$986\$272\$171,793
946.875%5.200%\$1,258\$984\$274\$171,519
956.875%5.200%\$1,258\$983\$275\$171,244
966.875%5.200%\$1,258\$981\$277\$170,967
Year 8  \$15,095\$11,875\$3,220
976.875%5.200%\$1,258\$980\$278\$170,689
986.875%5.200%\$1,258\$978\$280\$170,409
996.875%5.200%\$1,258\$976\$282\$170,127
1006.875%5.200%\$1,258\$975\$283\$169,844
1016.875%5.200%\$1,258\$973\$285\$169,559
1026.875%5.200%\$1,258\$971\$286\$169,273
1036.875%5.200%\$1,258\$970\$288\$168,985
1046.875%5.200%\$1,258\$968\$290\$168,695
1056.875%5.200%\$1,258\$966\$291\$168,403
1066.875%5.200%\$1,258\$965\$293\$168,110
1076.875%5.200%\$1,258\$963\$295\$167,816
1086.875%5.200%\$1,258\$961\$296\$167,519
Year 9  \$15,095\$11,647\$3,448
1096.875%5.200%\$1,258\$960\$298\$167,221
1106.875%5.200%\$1,258\$958\$300\$166,921
1116.875%5.200%\$1,258\$956\$302\$166,620
1126.875%5.200%\$1,258\$955\$303\$166,316
1136.875%5.200%\$1,258\$953\$305\$166,011
1146.875%5.200%\$1,258\$951\$307\$165,705
1156.875%5.200%\$1,258\$949\$309\$165,396
1166.875%5.200%\$1,258\$948\$310\$165,086
1176.875%5.200%\$1,258\$946\$312\$164,774
1186.875%5.200%\$1,258\$944\$314\$164,460
1196.875%5.200%\$1,258\$942\$316\$164,144
1206.875%5.200%\$1,258\$940\$317\$163,827
Year 10  \$15,095\$11,402\$3,693
1216.875%5.200%\$1,258\$939\$319\$163,507
1226.875%5.200%\$1,258\$937\$321\$163,186
1236.875%5.200%\$1,258\$935\$323\$162,863
1246.875%5.200%\$1,258\$933\$325\$162,538
1256.875%5.200%\$1,258\$931\$327\$162,212
1266.875%5.200%\$1,258\$929\$329\$161,883
1276.875%5.200%\$1,258\$927\$330\$161,553
1286.875%5.200%\$1,258\$926\$332\$161,220
1296.875%5.200%\$1,258\$924\$334\$160,886
1306.875%5.200%\$1,258\$922\$336\$160,550
1316.875%5.200%\$1,258\$920\$338\$160,212
1326.875%5.200%\$1,258\$918\$340\$159,872
Year 11  \$15,095\$11,140\$3,955
1336.875%5.200%\$1,258\$916\$342\$159,530
1346.875%5.200%\$1,258\$914\$344\$159,186
1356.875%5.200%\$1,258\$912\$346\$158,840
1366.875%5.200%\$1,258\$910\$348\$158,492
1376.875%5.200%\$1,258\$908\$350\$158,142
1386.875%5.200%\$1,258\$906\$352\$157,791
1396.875%5.200%\$1,258\$904\$354\$157,437
1406.875%5.200%\$1,258\$902\$356\$157,081
1416.875%5.200%\$1,258\$900\$358\$156,723
1426.875%5.200%\$1,258\$898\$360\$156,363
1436.875%5.200%\$1,258\$896\$362\$156,001
1446.875%5.200%\$1,258\$894\$364\$155,637
Year 12  \$15,095\$10,859\$4,235
1456.875%5.200%\$1,258\$892\$366\$155,270
1466.875%5.200%\$1,258\$890\$368\$154,902
1476.875%5.200%\$1,258\$887\$370\$154,532
1486.875%5.200%\$1,258\$885\$373\$154,159
1496.875%5.200%\$1,258\$883\$375\$153,784
1506.875%5.200%\$1,258\$881\$377\$153,408
1516.875%5.200%\$1,258\$879\$379\$153,029
1526.875%5.200%\$1,258\$877\$381\$152,647
1536.875%5.200%\$1,258\$875\$383\$152,264
1546.875%5.200%\$1,258\$872\$386\$151,878
1556.875%5.200%\$1,258\$870\$388\$151,491
1566.875%5.200%\$1,258\$868\$390\$151,101
Year 13  \$15,095\$10,559\$4,536
1576.875%5.200%\$1,258\$866\$392\$150,709
1586.875%5.200%\$1,258\$863\$394\$150,314
1596.875%5.200%\$1,258\$861\$397\$149,917
1606.875%5.200%\$1,258\$859\$399\$149,518
1616.875%5.200%\$1,258\$857\$401\$149,117
1626.875%5.200%\$1,258\$854\$404\$148,714
1636.875%5.200%\$1,258\$852\$406\$148,308
1646.875%5.200%\$1,258\$850\$408\$147,899
1656.875%5.200%\$1,258\$847\$411\$147,489
1666.875%5.200%\$1,258\$845\$413\$147,076
1676.875%5.200%\$1,258\$843\$415\$146,661
1686.875%5.200%\$1,258\$840\$418\$146,243
Year 14  \$15,095\$10,237\$4,858
1696.875%5.200%\$1,258\$838\$420\$145,823
1706.875%5.200%\$1,258\$835\$422\$145,401
1716.875%5.200%\$1,258\$833\$425\$144,976
1726.875%5.200%\$1,258\$831\$427\$144,548
1736.875%5.200%\$1,258\$828\$430\$144,119
1746.875%5.200%\$1,258\$826\$432\$143,686
1756.875%5.200%\$1,258\$823\$435\$143,252
1766.875%5.200%\$1,258\$821\$437\$142,815
1776.875%5.200%\$1,258\$818\$440\$142,375
1786.875%5.200%\$1,258\$816\$442\$141,933
1796.875%5.200%\$1,258\$813\$445\$141,488
1806.875%5.200%\$1,258\$811\$447\$141,041
Year 15  \$15,095\$9,892\$5,202
1816.875%5.200%\$1,258\$808\$450\$140,591
1826.875%5.200%\$1,258\$805\$452\$140,138
1836.875%5.200%\$1,258\$803\$455\$139,683
1846.875%5.200%\$1,258\$800\$458\$139,226
1856.875%5.200%\$1,258\$798\$460\$138,766
1866.875%5.200%\$1,258\$795\$463\$138,303
1876.875%5.200%\$1,258\$792\$466\$137,837
1886.875%5.200%\$1,258\$790\$468\$137,369
1896.875%5.200%\$1,258\$787\$471\$136,898
1906.875%5.200%\$1,258\$784\$474\$136,425
1916.875%5.200%\$1,258\$782\$476\$135,948
1926.875%5.200%\$1,258\$779\$479\$135,469
Year 16  \$15,095\$9,523\$5,572
1936.875%5.200%\$1,258\$776\$482\$134,987
1946.875%5.200%\$1,258\$773\$485\$134,503
1956.875%5.200%\$1,258\$771\$487\$134,016
1966.875%5.200%\$1,258\$768\$490\$133,526
1976.875%5.200%\$1,258\$765\$493\$133,033
1986.875%5.200%\$1,258\$762\$496\$132,537
1996.875%5.200%\$1,258\$759\$499\$132,038
2006.875%5.200%\$1,258\$756\$501\$131,537
2016.875%5.200%\$1,258\$754\$504\$131,033
2026.875%5.200%\$1,258\$751\$507\$130,525
2036.875%5.200%\$1,258\$748\$510\$130,015
2046.875%5.200%\$1,258\$745\$513\$129,502
Year 17  \$15,095\$9,128\$5,967
2056.875%5.200%\$1,258\$742\$516\$128,986
2066.875%5.200%\$1,258\$739\$519\$128,468
2076.875%5.200%\$1,258\$736\$522\$127,946
2086.875%5.200%\$1,258\$733\$525\$127,421
2096.875%5.200%\$1,258\$730\$528\$126,893
2106.875%5.200%\$1,258\$727\$531\$126,362
2116.875%5.200%\$1,258\$724\$534\$125,828
2126.875%5.200%\$1,258\$721\$537\$125,291
2136.875%5.200%\$1,258\$718\$540\$124,751
2146.875%5.200%\$1,258\$715\$543\$124,208
2156.875%5.200%\$1,258\$712\$546\$123,662
2166.875%5.200%\$1,258\$708\$549\$123,112
Year 18  \$15,095\$8,704\$6,390
2176.875%5.200%\$1,258\$705\$553\$122,560
2186.875%5.200%\$1,258\$702\$556\$122,004
2196.875%5.200%\$1,258\$699\$559\$121,445
2206.875%5.200%\$1,258\$696\$562\$120,883
2216.875%5.200%\$1,258\$693\$565\$120,317
2226.875%5.200%\$1,258\$689\$569\$119,749
2236.875%5.200%\$1,258\$686\$572\$119,177
2246.875%5.200%\$1,258\$683\$575\$118,602
2256.875%5.200%\$1,258\$679\$578\$118,024
2266.875%5.200%\$1,258\$676\$582\$117,442
2276.875%5.200%\$1,258\$673\$585\$116,857
2286.875%5.200%\$1,258\$669\$588\$116,268
Year 19  \$15,095\$8,251\$6,844
2296.875%5.200%\$1,258\$666\$592\$115,677
2306.875%5.200%\$1,258\$663\$595\$115,081
2316.875%5.200%\$1,258\$659\$599\$114,483
2326.875%5.200%\$1,258\$656\$602\$113,881
2336.875%5.200%\$1,258\$652\$605\$113,275
2346.875%5.200%\$1,258\$649\$609\$112,667
2356.875%5.200%\$1,258\$645\$612\$112,054
2366.875%5.200%\$1,258\$642\$616\$111,438
2376.875%5.200%\$1,258\$638\$619\$110,819
2386.875%5.200%\$1,258\$635\$623\$110,196
2396.875%5.200%\$1,258\$631\$627\$109,569
2406.875%5.200%\$1,258\$628\$630\$108,939
Year 20  \$15,095\$7,765\$7,329
2416.875%5.200%\$1,258\$624\$634\$108,305
2426.875%5.200%\$1,258\$620\$637\$107,668
2436.875%5.200%\$1,258\$617\$641\$107,027
2446.875%5.200%\$1,258\$613\$645\$106,382
2456.875%5.200%\$1,258\$609\$648\$105,734
2466.875%5.200%\$1,258\$606\$652\$105,082
2476.875%5.200%\$1,258\$602\$656\$104,426
2486.875%5.200%\$1,258\$598\$660\$103,766
2496.875%5.200%\$1,258\$594\$663\$103,103
2506.875%5.200%\$1,258\$591\$667\$102,436
2516.875%5.200%\$1,258\$587\$671\$101,765
2526.875%5.200%\$1,258\$583\$675\$101,090
Year 21  \$15,095\$7,245\$7,849
2536.875%5.200%\$1,258\$579\$679\$100,411
2546.875%5.200%\$1,258\$575\$683\$99,728
2556.875%5.200%\$1,258\$571\$687\$99,042
2566.875%5.200%\$1,258\$567\$690\$98,351
2576.875%5.200%\$1,258\$563\$694\$97,657
2586.875%5.200%\$1,258\$559\$698\$96,959
2596.875%5.200%\$1,258\$555\$702\$96,256
2606.875%5.200%\$1,258\$551\$706\$95,550
2616.875%5.200%\$1,258\$547\$710\$94,839
2626.875%5.200%\$1,258\$543\$715\$94,125
2636.875%5.200%\$1,258\$539\$719\$93,406
2646.875%5.200%\$1,258\$535\$723\$92,683
Year 22  \$15,095\$6,688\$8,406
2656.875%5.200%\$1,258\$531\$727\$91,956
2666.875%5.200%\$1,258\$527\$731\$91,225
2676.875%5.200%\$1,258\$523\$735\$90,490
2686.875%5.200%\$1,258\$518\$739\$89,751
2696.875%5.200%\$1,258\$514\$744\$89,007
2706.875%5.200%\$1,258\$510\$748\$88,259
2716.875%5.200%\$1,258\$506\$752\$87,507
2726.875%5.200%\$1,258\$501\$757\$86,750
2736.875%5.200%\$1,258\$497\$761\$85,989
2746.875%5.200%\$1,258\$493\$765\$85,224
2756.875%5.200%\$1,258\$488\$770\$84,454
2766.875%5.200%\$1,258\$484\$774\$83,680
Year 23  \$15,095\$6,092\$9,003
2776.875%5.200%\$1,258\$479\$778\$82,902
2786.875%5.200%\$1,258\$475\$783\$82,119
2796.875%5.200%\$1,258\$470\$787\$81,332
2806.875%5.200%\$1,258\$466\$792\$80,540
2816.875%5.200%\$1,258\$461\$796\$79,743
2826.875%5.200%\$1,258\$457\$801\$78,942
2836.875%5.200%\$1,258\$452\$806\$78,137
2846.875%5.200%\$1,258\$448\$810\$77,326
2856.875%5.200%\$1,258\$443\$815\$76,511
2866.875%5.200%\$1,258\$438\$820\$75,692
2876.875%5.200%\$1,258\$434\$824\$74,868
2886.875%5.200%\$1,258\$429\$829\$74,039
Year 24  \$15,095\$5,453\$9,642
2896.875%5.200%\$1,258\$424\$834\$73,205
2906.875%5.200%\$1,258\$419\$838\$72,367
2916.875%5.200%\$1,258\$415\$843\$71,523
2926.875%5.200%\$1,258\$410\$848\$70,675
2936.875%5.200%\$1,258\$405\$853\$69,822
2946.875%5.200%\$1,258\$400\$858\$68,964
2956.875%5.200%\$1,258\$395\$863\$68,101
2966.875%5.200%\$1,258\$390\$868\$67,234
2976.875%5.200%\$1,258\$385\$873\$66,361
2986.875%5.200%\$1,258\$380\$878\$65,483
2996.875%5.200%\$1,258\$375\$883\$64,601
3006.875%5.200%\$1,258\$370\$888\$63,713
Year 25  \$15,095\$4,769\$10,326
3016.875%5.200%\$1,258\$365\$893\$62,820
3026.875%5.200%\$1,258\$360\$898\$61,922
3036.875%5.200%\$1,258\$355\$903\$61,019
3046.875%5.200%\$1,258\$350\$908\$60,111
3056.875%5.200%\$1,258\$344\$914\$59,197
3066.875%5.200%\$1,258\$339\$919\$58,278
3076.875%5.200%\$1,258\$334\$924\$57,354
3086.875%5.200%\$1,258\$329\$929\$56,425
3096.875%5.200%\$1,258\$323\$935\$55,490
3106.875%5.200%\$1,258\$318\$940\$54,550
3116.875%5.200%\$1,258\$313\$945\$53,605
3126.875%5.200%\$1,258\$307\$951\$52,654
Year 26  \$15,095\$4,036\$11,059
3136.875%5.200%\$1,258\$302\$956\$51,698
3146.875%5.200%\$1,258\$296\$962\$50,736
3156.875%5.200%\$1,258\$291\$967\$49,769
3166.875%5.200%\$1,258\$285\$973\$48,796
3176.875%5.200%\$1,258\$280\$978\$47,818
3186.875%5.200%\$1,258\$274\$984\$46,834
3196.875%5.200%\$1,258\$268\$990\$45,845
3206.875%5.200%\$1,258\$263\$995\$44,849
3216.875%5.200%\$1,258\$257\$1,001\$43,848
3226.875%5.200%\$1,258\$251\$1,007\$42,842
3236.875%5.200%\$1,258\$245\$1,012\$41,829
3246.875%5.200%\$1,258\$240\$1,018\$40,811
Year 27  \$15,095\$3,251\$11,843
3256.875%5.200%\$1,258\$234\$1,024\$39,787
3266.875%5.200%\$1,258\$228\$1,030\$38,757
3276.875%5.200%\$1,258\$222\$1,036\$37,721
3286.875%5.200%\$1,258\$216\$1,042\$36,679
3296.875%5.200%\$1,258\$210\$1,048\$35,632
3306.875%5.200%\$1,258\$204\$1,054\$34,578
3316.875%5.200%\$1,258\$198\$1,060\$33,518
3326.875%5.200%\$1,258\$192\$1,066\$32,452
3336.875%5.200%\$1,258\$186\$1,072\$31,380
3346.875%5.200%\$1,258\$180\$1,078\$30,302
3356.875%5.200%\$1,258\$174\$1,084\$29,218
3366.875%5.200%\$1,258\$167\$1,090\$28,127
Year 28  \$15,095\$2,411\$12,684
3376.875%5.200%\$1,258\$161\$1,097\$27,031
3386.875%5.200%\$1,258\$155\$1,103\$25,928
3396.875%5.200%\$1,258\$149\$1,109\$24,818
3406.875%5.200%\$1,258\$142\$1,116\$23,703
3416.875%5.200%\$1,258\$136\$1,122\$22,580
3426.875%5.200%\$1,258\$129\$1,129\$21,452
3436.875%5.200%\$1,258\$123\$1,135\$20,317
3446.875%5.200%\$1,258\$116\$1,141\$19,175
3456.875%5.200%\$1,258\$110\$1,148\$18,027
3466.875%5.200%\$1,258\$103\$1,155\$16,873
3476.875%5.200%\$1,258\$97\$1,161\$15,712
3486.875%5.200%\$1,258\$90\$1,168\$14,544
Year 29  \$15,095\$1,511\$13,584
3496.875%5.200%\$1,258\$83\$1,175\$13,369
3506.875%5.200%\$1,258\$77\$1,181\$12,188
3516.875%5.200%\$1,258\$70\$1,188\$11,000
3526.875%5.200%\$1,258\$63\$1,195\$9,805
3536.875%5.200%\$1,258\$56\$1,202\$8,603
3546.875%5.200%\$1,258\$49\$1,209\$7,395
3556.875%5.200%\$1,258\$42\$1,216\$6,179
3566.875%5.200%\$1,258\$35\$1,222\$4,957
3576.875%5.200%\$1,258\$28\$1,229\$3,727
3586.875%5.200%\$1,258\$21\$1,237\$2,491
3596.875%5.200%\$1,258\$14\$1,244\$1,247
3606.875%5.200%\$1,254\$7\$1,247\$0
Year 30  \$15,091\$547\$14,544
Grand
Total
\$439,238 \$259,238 \$180,000

## 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.