# Interest-Only 7/1 ARM

A common interest-only adjustable rate mortgage is a 7/1 ARM with a 7 year interest only period. This type of loan may appeal to borrowers who plan to be in their home less than 7 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
Assuming a stable interest rate index, after 7 years the principal balance will remain at the original loan amount while \$12,469 per year will have been paid in interest. At the beginning of year 8 the loan is fully amortized and if the index rate does not change the minimum monthly principal and interest payment will jump from \$1,039 to \$1,291 an increase of 24%.
Stable
MonthInterest
Rate
Index
Rate
Payment Interest Principal Balance
17.125%5.200%\$1,039\$1,039\$0\$175,000
27.125%5.200%\$1,039\$1,039\$0\$175,000
37.125%5.200%\$1,039\$1,039\$0\$175,000
47.125%5.200%\$1,039\$1,039\$0\$175,000
57.125%5.200%\$1,039\$1,039\$0\$175,000
67.125%5.200%\$1,039\$1,039\$0\$175,000
77.125%5.200%\$1,039\$1,039\$0\$175,000
87.125%5.200%\$1,039\$1,039\$0\$175,000
97.125%5.200%\$1,039\$1,039\$0\$175,000
107.125%5.200%\$1,039\$1,039\$0\$175,000
117.125%5.200%\$1,039\$1,039\$0\$175,000
127.125%5.200%\$1,039\$1,039\$0\$175,000
Year 1  \$12,469\$12,469\$0
137.125%5.200%\$1,039\$1,039\$0\$175,000
147.125%5.200%\$1,039\$1,039\$0\$175,000
157.125%5.200%\$1,039\$1,039\$0\$175,000
167.125%5.200%\$1,039\$1,039\$0\$175,000
177.125%5.200%\$1,039\$1,039\$0\$175,000
187.125%5.200%\$1,039\$1,039\$0\$175,000
197.125%5.200%\$1,039\$1,039\$0\$175,000
207.125%5.200%\$1,039\$1,039\$0\$175,000
217.125%5.200%\$1,039\$1,039\$0\$175,000
227.125%5.200%\$1,039\$1,039\$0\$175,000
237.125%5.200%\$1,039\$1,039\$0\$175,000
247.125%5.200%\$1,039\$1,039\$0\$175,000
Year 2  \$12,469\$12,469\$0
257.125%5.200%\$1,039\$1,039\$0\$175,000
267.125%5.200%\$1,039\$1,039\$0\$175,000
277.125%5.200%\$1,039\$1,039\$0\$175,000
287.125%5.200%\$1,039\$1,039\$0\$175,000
297.125%5.200%\$1,039\$1,039\$0\$175,000
307.125%5.200%\$1,039\$1,039\$0\$175,000
317.125%5.200%\$1,039\$1,039\$0\$175,000
327.125%5.200%\$1,039\$1,039\$0\$175,000
337.125%5.200%\$1,039\$1,039\$0\$175,000
347.125%5.200%\$1,039\$1,039\$0\$175,000
357.125%5.200%\$1,039\$1,039\$0\$175,000
367.125%5.200%\$1,039\$1,039\$0\$175,000
Year 3  \$12,469\$12,469\$0
377.125%5.200%\$1,039\$1,039\$0\$175,000
387.125%5.200%\$1,039\$1,039\$0\$175,000
397.125%5.200%\$1,039\$1,039\$0\$175,000
407.125%5.200%\$1,039\$1,039\$0\$175,000
417.125%5.200%\$1,039\$1,039\$0\$175,000
427.125%5.200%\$1,039\$1,039\$0\$175,000
437.125%5.200%\$1,039\$1,039\$0\$175,000
447.125%5.200%\$1,039\$1,039\$0\$175,000
457.125%5.200%\$1,039\$1,039\$0\$175,000
467.125%5.200%\$1,039\$1,039\$0\$175,000
477.125%5.200%\$1,039\$1,039\$0\$175,000
487.125%5.200%\$1,039\$1,039\$0\$175,000
Year 4  \$12,469\$12,469\$0
497.125%5.200%\$1,039\$1,039\$0\$175,000
507.125%5.200%\$1,039\$1,039\$0\$175,000
517.125%5.200%\$1,039\$1,039\$0\$175,000
527.125%5.200%\$1,039\$1,039\$0\$175,000
537.125%5.200%\$1,039\$1,039\$0\$175,000
547.125%5.200%\$1,039\$1,039\$0\$175,000
557.125%5.200%\$1,039\$1,039\$0\$175,000
567.125%5.200%\$1,039\$1,039\$0\$175,000
577.125%5.200%\$1,039\$1,039\$0\$175,000
587.125%5.200%\$1,039\$1,039\$0\$175,000
597.125%5.200%\$1,039\$1,039\$0\$175,000
607.125%5.200%\$1,039\$1,039\$0\$175,000
Year 5  \$12,469\$12,469\$0
617.125%5.200%\$1,039\$1,039\$0\$175,000
627.125%5.200%\$1,039\$1,039\$0\$175,000
637.125%5.200%\$1,039\$1,039\$0\$175,000
647.125%5.200%\$1,039\$1,039\$0\$175,000
657.125%5.200%\$1,039\$1,039\$0\$175,000
667.125%5.200%\$1,039\$1,039\$0\$175,000
677.125%5.200%\$1,039\$1,039\$0\$175,000
687.125%5.200%\$1,039\$1,039\$0\$175,000
697.125%5.200%\$1,039\$1,039\$0\$175,000
707.125%5.200%\$1,039\$1,039\$0\$175,000
717.125%5.200%\$1,039\$1,039\$0\$175,000
727.125%5.200%\$1,039\$1,039\$0\$175,000
Year 6  \$12,469\$12,469\$0
737.125%5.200%\$1,039\$1,039\$0\$175,000
747.125%5.200%\$1,039\$1,039\$0\$175,000
757.125%5.200%\$1,039\$1,039\$0\$175,000
767.125%5.200%\$1,039\$1,039\$0\$175,000
777.125%5.200%\$1,039\$1,039\$0\$175,000
787.125%5.200%\$1,039\$1,039\$0\$175,000
797.125%5.200%\$1,039\$1,039\$0\$175,000
807.125%5.200%\$1,039\$1,039\$0\$175,000
817.125%5.200%\$1,039\$1,039\$0\$175,000
827.125%5.200%\$1,039\$1,039\$0\$175,000
837.125%5.200%\$1,039\$1,039\$0\$175,000
847.125%5.200%\$1,039\$1,039\$0\$175,000
Year 7  \$12,469\$12,469\$0
857.125%5.200%\$1,291\$1,039\$252\$174,748
867.125%5.200%\$1,291\$1,038\$253\$174,495
877.125%5.200%\$1,291\$1,036\$255\$174,240
887.125%5.200%\$1,291\$1,035\$256\$173,983
897.125%5.200%\$1,291\$1,033\$258\$173,725
907.125%5.200%\$1,291\$1,031\$260\$173,466
917.125%5.200%\$1,291\$1,030\$261\$173,204
927.125%5.200%\$1,291\$1,028\$263\$172,942
937.125%5.200%\$1,291\$1,027\$264\$172,678
947.125%5.200%\$1,291\$1,025\$266\$172,412
957.125%5.200%\$1,291\$1,024\$267\$172,145
967.125%5.200%\$1,291\$1,022\$269\$171,876
Year 8  \$15,492\$12,368\$3,124
977.125%5.200%\$1,291\$1,021\$271\$171,605
987.125%5.200%\$1,291\$1,019\$272\$171,333
997.125%5.200%\$1,291\$1,017\$274\$171,059
1007.125%5.200%\$1,291\$1,016\$275\$170,784
1017.125%5.200%\$1,291\$1,014\$277\$170,507
1027.125%5.200%\$1,291\$1,012\$279\$170,228
1037.125%5.200%\$1,291\$1,011\$280\$169,948
1047.125%5.200%\$1,291\$1,009\$282\$169,666
1057.125%5.200%\$1,291\$1,007\$284\$169,382
1067.125%5.200%\$1,291\$1,006\$285\$169,097
1077.125%5.200%\$1,291\$1,004\$287\$168,810
1087.125%5.200%\$1,291\$1,002\$289\$168,521
Year 9  \$15,492\$12,138\$3,354
1097.125%5.200%\$1,291\$1,001\$290\$168,231
1107.125%5.200%\$1,291\$999\$292\$167,939
1117.125%5.200%\$1,291\$997\$294\$167,645
1127.125%5.200%\$1,291\$995\$296\$167,349
1137.125%5.200%\$1,291\$994\$297\$167,052
1147.125%5.200%\$1,291\$992\$299\$166,753
1157.125%5.200%\$1,291\$990\$301\$166,452
1167.125%5.200%\$1,291\$988\$303\$166,149
1177.125%5.200%\$1,291\$987\$305\$165,844
1187.125%5.200%\$1,291\$985\$306\$165,538
1197.125%5.200%\$1,291\$983\$308\$165,230
1207.125%5.200%\$1,291\$981\$310\$164,920
Year 10  \$15,492\$11,891\$3,601
1217.125%5.200%\$1,291\$979\$312\$164,608
1227.125%5.200%\$1,291\$977\$314\$164,294
1237.125%5.200%\$1,291\$976\$316\$163,979
1247.125%5.200%\$1,291\$974\$317\$163,662
1257.125%5.200%\$1,291\$972\$319\$163,342
1267.125%5.200%\$1,291\$970\$321\$163,021
1277.125%5.200%\$1,291\$968\$323\$162,698
1287.125%5.200%\$1,291\$966\$325\$162,373
1297.125%5.200%\$1,291\$964\$327\$162,046
1307.125%5.200%\$1,291\$962\$329\$161,717
1317.125%5.200%\$1,291\$960\$331\$161,386
1327.125%5.200%\$1,291\$958\$333\$161,054
Year 11  \$15,492\$11,626\$3,866
1337.125%5.200%\$1,291\$956\$335\$160,719
1347.125%5.200%\$1,291\$954\$337\$160,382
1357.125%5.200%\$1,291\$952\$339\$160,043
1367.125%5.200%\$1,291\$950\$341\$159,702
1377.125%5.200%\$1,291\$948\$343\$159,360
1387.125%5.200%\$1,291\$946\$345\$159,015
1397.125%5.200%\$1,291\$944\$347\$158,668
1407.125%5.200%\$1,291\$942\$349\$158,319
1417.125%5.200%\$1,291\$940\$351\$157,968
1427.125%5.200%\$1,291\$938\$353\$157,615
1437.125%5.200%\$1,291\$936\$355\$157,260
1447.125%5.200%\$1,291\$934\$357\$156,902
Year 12  \$15,492\$11,341\$4,151
1457.125%5.200%\$1,291\$932\$359\$156,543
1467.125%5.200%\$1,291\$929\$362\$156,181
1477.125%5.200%\$1,291\$927\$364\$155,818
1487.125%5.200%\$1,291\$925\$366\$155,452
1497.125%5.200%\$1,291\$923\$368\$155,084
1507.125%5.200%\$1,291\$921\$370\$154,714
1517.125%5.200%\$1,291\$919\$372\$154,341
1527.125%5.200%\$1,291\$916\$375\$153,967
1537.125%5.200%\$1,291\$914\$377\$153,590
1547.125%5.200%\$1,291\$912\$379\$153,211
1557.125%5.200%\$1,291\$910\$381\$152,829
1567.125%5.200%\$1,291\$907\$384\$152,446
Year 13  \$15,492\$11,036\$4,457
1577.125%5.200%\$1,291\$905\$386\$152,060
1587.125%5.200%\$1,291\$903\$388\$151,672
1597.125%5.200%\$1,291\$901\$390\$151,281
1607.125%5.200%\$1,291\$898\$393\$150,888
1617.125%5.200%\$1,291\$896\$395\$150,493
1627.125%5.200%\$1,291\$894\$397\$150,096
1637.125%5.200%\$1,291\$891\$400\$149,696
1647.125%5.200%\$1,291\$889\$402\$149,294
1657.125%5.200%\$1,291\$886\$405\$148,889
1667.125%5.200%\$1,291\$884\$407\$148,482
1677.125%5.200%\$1,291\$882\$409\$148,073
1687.125%5.200%\$1,291\$879\$412\$147,661
Year 14  \$15,492\$10,708\$4,785
1697.125%5.200%\$1,291\$877\$414\$147,247
1707.125%5.200%\$1,291\$874\$417\$146,830
1717.125%5.200%\$1,291\$872\$419\$146,411
1727.125%5.200%\$1,291\$869\$422\$145,989
1737.125%5.200%\$1,291\$867\$424\$145,565
1747.125%5.200%\$1,291\$864\$427\$145,138
1757.125%5.200%\$1,291\$862\$429\$144,709
1767.125%5.200%\$1,291\$859\$432\$144,277
1777.125%5.200%\$1,291\$857\$434\$143,842
1787.125%5.200%\$1,291\$854\$437\$143,405
1797.125%5.200%\$1,291\$851\$440\$142,966
1807.125%5.200%\$1,291\$849\$442\$142,524
Year 15  \$15,492\$10,355\$5,137
1817.125%5.200%\$1,291\$846\$445\$142,079
1827.125%5.200%\$1,291\$844\$447\$141,631
1837.125%5.200%\$1,291\$841\$450\$141,181
1847.125%5.200%\$1,291\$838\$453\$140,729
1857.125%5.200%\$1,291\$836\$455\$140,273
1867.125%5.200%\$1,291\$833\$458\$139,815
1877.125%5.200%\$1,291\$830\$461\$139,354
1887.125%5.200%\$1,291\$827\$464\$138,891
1897.125%5.200%\$1,291\$825\$466\$138,424
1907.125%5.200%\$1,291\$822\$469\$137,955
1917.125%5.200%\$1,291\$819\$472\$137,483
1927.125%5.200%\$1,291\$816\$475\$137,008
Year 16  \$15,492\$9,977\$5,515
1937.125%5.200%\$1,291\$813\$478\$136,531
1947.125%5.200%\$1,291\$811\$480\$136,050
1957.125%5.200%\$1,291\$808\$483\$135,567
1967.125%5.200%\$1,291\$805\$486\$135,081
1977.125%5.200%\$1,291\$802\$489\$134,592
1987.125%5.200%\$1,291\$799\$492\$134,100
1997.125%5.200%\$1,291\$796\$495\$133,605
2007.125%5.200%\$1,291\$793\$498\$133,108
2017.125%5.200%\$1,291\$790\$501\$132,607
2027.125%5.200%\$1,291\$787\$504\$132,103
2037.125%5.200%\$1,291\$784\$507\$131,597
2047.125%5.200%\$1,291\$781\$510\$131,087
Year 17  \$15,492\$9,571\$5,921
2057.125%5.200%\$1,291\$778\$513\$130,574
2067.125%5.200%\$1,291\$775\$516\$130,058
2077.125%5.200%\$1,291\$772\$519\$129,540
2087.125%5.200%\$1,291\$769\$522\$129,018
2097.125%5.200%\$1,291\$766\$525\$128,493
2107.125%5.200%\$1,291\$763\$528\$127,965
2117.125%5.200%\$1,291\$760\$531\$127,433
2127.125%5.200%\$1,291\$757\$534\$126,899
2137.125%5.200%\$1,291\$753\$538\$126,362
2147.125%5.200%\$1,291\$750\$541\$125,821
2157.125%5.200%\$1,291\$747\$544\$125,277
2167.125%5.200%\$1,291\$744\$547\$124,730
Year 18  \$15,492\$9,135\$6,357
2177.125%5.200%\$1,291\$741\$550\$124,179
2187.125%5.200%\$1,291\$737\$554\$123,625
2197.125%5.200%\$1,291\$734\$557\$123,068
2207.125%5.200%\$1,291\$731\$560\$122,508
2217.125%5.200%\$1,291\$727\$564\$121,944
2227.125%5.200%\$1,291\$724\$567\$121,377
2237.125%5.200%\$1,291\$721\$570\$120,807
2247.125%5.200%\$1,291\$717\$574\$120,233
2257.125%5.200%\$1,291\$714\$577\$119,656
2267.125%5.200%\$1,291\$710\$581\$119,076
2277.125%5.200%\$1,291\$707\$584\$118,492
2287.125%5.200%\$1,291\$704\$587\$117,904
Year 19  \$15,492\$8,667\$6,825
2297.125%5.200%\$1,291\$700\$591\$117,313
2307.125%5.200%\$1,291\$697\$594\$116,719
2317.125%5.200%\$1,291\$693\$598\$116,121
2327.125%5.200%\$1,291\$689\$602\$115,519
2337.125%5.200%\$1,291\$686\$605\$114,914
2347.125%5.200%\$1,291\$682\$609\$114,305
2357.125%5.200%\$1,291\$679\$612\$113,693
2367.125%5.200%\$1,291\$675\$616\$113,077
2377.125%5.200%\$1,291\$671\$620\$112,457
2387.125%5.200%\$1,291\$668\$623\$111,834
2397.125%5.200%\$1,291\$664\$627\$111,207
2407.125%5.200%\$1,291\$660\$631\$110,576
Year 20  \$15,492\$8,164\$7,328
2417.125%5.200%\$1,291\$657\$634\$109,942
2427.125%5.200%\$1,291\$653\$638\$109,304
2437.125%5.200%\$1,291\$649\$642\$108,661
2447.125%5.200%\$1,291\$645\$646\$108,016
2457.125%5.200%\$1,291\$641\$650\$107,366
2467.125%5.200%\$1,291\$637\$654\$106,712
2477.125%5.200%\$1,291\$634\$657\$106,055
2487.125%5.200%\$1,291\$630\$661\$105,394
2497.125%5.200%\$1,291\$626\$665\$104,728
2507.125%5.200%\$1,291\$622\$669\$104,059
2517.125%5.200%\$1,291\$618\$673\$103,386
2527.125%5.200%\$1,291\$614\$677\$102,709
Year 21  \$15,492\$7,625\$7,867
2537.125%5.200%\$1,291\$610\$681\$102,028
2547.125%5.200%\$1,291\$606\$685\$101,342
2557.125%5.200%\$1,291\$602\$689\$100,653
2567.125%5.200%\$1,291\$598\$693\$99,960
2577.125%5.200%\$1,291\$594\$698\$99,262
2587.125%5.200%\$1,291\$589\$702\$98,560
2597.125%5.200%\$1,291\$585\$706\$97,855
2607.125%5.200%\$1,291\$581\$710\$97,145
2617.125%5.200%\$1,291\$577\$714\$96,430
2627.125%5.200%\$1,291\$573\$718\$95,712
2637.125%5.200%\$1,291\$568\$723\$94,989
2647.125%5.200%\$1,291\$564\$727\$94,262
Year 22  \$15,492\$7,046\$8,447
2657.125%5.200%\$1,291\$560\$731\$93,531
2667.125%5.200%\$1,291\$555\$736\$92,795
2677.125%5.200%\$1,291\$551\$740\$92,055
2687.125%5.200%\$1,291\$547\$744\$91,311
2697.125%5.200%\$1,291\$542\$749\$90,562
2707.125%5.200%\$1,291\$538\$753\$89,808
2717.125%5.200%\$1,291\$533\$758\$89,051
2727.125%5.200%\$1,291\$529\$762\$88,288
2737.125%5.200%\$1,291\$524\$767\$87,522
2747.125%5.200%\$1,291\$520\$771\$86,750
2757.125%5.200%\$1,291\$515\$776\$85,974
2767.125%5.200%\$1,291\$510\$781\$85,194
Year 23  \$15,492\$6,424\$9,069
2777.125%5.200%\$1,291\$506\$785\$84,408
2787.125%5.200%\$1,291\$501\$790\$83,619
2797.125%5.200%\$1,291\$496\$795\$82,824
2807.125%5.200%\$1,291\$492\$799\$82,025
2817.125%5.200%\$1,291\$487\$804\$81,221
2827.125%5.200%\$1,291\$482\$809\$80,412
2837.125%5.200%\$1,291\$477\$814\$79,598
2847.125%5.200%\$1,291\$473\$818\$78,780
2857.125%5.200%\$1,291\$468\$823\$77,957
2867.125%5.200%\$1,291\$463\$828\$77,129
2877.125%5.200%\$1,291\$458\$833\$76,296
2887.125%5.200%\$1,291\$453\$838\$75,457
Year 24  \$15,492\$5,756\$9,736
2897.125%5.200%\$1,291\$448\$843\$74,614
2907.125%5.200%\$1,291\$443\$848\$73,766
2917.125%5.200%\$1,291\$438\$853\$72,913
2927.125%5.200%\$1,291\$433\$858\$72,055
2937.125%5.200%\$1,291\$428\$863\$71,192
2947.125%5.200%\$1,291\$423\$868\$70,324
2957.125%5.200%\$1,291\$418\$873\$69,450
2967.125%5.200%\$1,291\$412\$879\$68,572
2977.125%5.200%\$1,291\$407\$884\$67,688
2987.125%5.200%\$1,291\$402\$889\$66,799
2997.125%5.200%\$1,291\$397\$894\$65,904
3007.125%5.200%\$1,291\$391\$900\$65,004
Year 25  \$15,492\$5,039\$10,453
3017.125%5.200%\$1,291\$386\$905\$64,099
3027.125%5.200%\$1,291\$381\$910\$63,189
3037.125%5.200%\$1,291\$375\$916\$62,273
3047.125%5.200%\$1,291\$370\$921\$61,352
3057.125%5.200%\$1,291\$364\$927\$60,425
3067.125%5.200%\$1,291\$359\$932\$59,493
3077.125%5.200%\$1,291\$353\$938\$58,555
3087.125%5.200%\$1,291\$348\$943\$57,612
3097.125%5.200%\$1,291\$342\$949\$56,663
3107.125%5.200%\$1,291\$336\$955\$55,708
3117.125%5.200%\$1,291\$331\$960\$54,748
3127.125%5.200%\$1,291\$325\$966\$53,782
Year 26  \$15,492\$4,270\$11,223
3137.125%5.200%\$1,291\$319\$972\$52,810
3147.125%5.200%\$1,291\$314\$977\$51,833
3157.125%5.200%\$1,291\$308\$983\$50,849
3167.125%5.200%\$1,291\$302\$989\$49,860
3177.125%5.200%\$1,291\$296\$995\$48,865
3187.125%5.200%\$1,291\$290\$1,001\$47,864
3197.125%5.200%\$1,291\$284\$1,007\$46,858
3207.125%5.200%\$1,291\$278\$1,013\$45,845
3217.125%5.200%\$1,291\$272\$1,019\$44,826
3227.125%5.200%\$1,291\$266\$1,025\$43,801
3237.125%5.200%\$1,291\$260\$1,031\$42,770
3247.125%5.200%\$1,291\$254\$1,037\$41,733
Year 27  \$15,492\$3,444\$12,049
3257.125%5.200%\$1,291\$248\$1,043\$40,690
3267.125%5.200%\$1,291\$242\$1,049\$39,640
3277.125%5.200%\$1,291\$235\$1,056\$38,585
3287.125%5.200%\$1,291\$229\$1,062\$37,523
3297.125%5.200%\$1,291\$223\$1,068\$36,455
3307.125%5.200%\$1,291\$216\$1,075\$35,380
3317.125%5.200%\$1,291\$210\$1,081\$34,299
3327.125%5.200%\$1,291\$204\$1,087\$33,212
3337.125%5.200%\$1,291\$197\$1,094\$32,118
3347.125%5.200%\$1,291\$191\$1,100\$31,018
3357.125%5.200%\$1,291\$184\$1,107\$29,911
3367.125%5.200%\$1,291\$178\$1,113\$28,797
Year 28  \$15,492\$2,556\$12,936
3377.125%5.200%\$1,291\$171\$1,120\$27,677
3387.125%5.200%\$1,291\$164\$1,127\$26,550
3397.125%5.200%\$1,291\$158\$1,133\$25,417
3407.125%5.200%\$1,291\$151\$1,140\$24,277
3417.125%5.200%\$1,291\$144\$1,147\$23,130
3427.125%5.200%\$1,291\$137\$1,154\$21,976
3437.125%5.200%\$1,291\$130\$1,161\$20,816
3447.125%5.200%\$1,291\$124\$1,167\$19,648
3457.125%5.200%\$1,291\$117\$1,174\$18,474
3467.125%5.200%\$1,291\$110\$1,181\$17,293
3477.125%5.200%\$1,291\$103\$1,188\$16,104
3487.125%5.200%\$1,291\$96\$1,195\$14,909
Year 29  \$15,492\$1,604\$13,888
3497.125%5.200%\$1,291\$89\$1,203\$13,706
3507.125%5.200%\$1,291\$81\$1,210\$12,497
3517.125%5.200%\$1,291\$74\$1,217\$11,280
3527.125%5.200%\$1,291\$67\$1,224\$10,056
3537.125%5.200%\$1,291\$60\$1,231\$8,825
3547.125%5.200%\$1,291\$52\$1,239\$7,586
3557.125%5.200%\$1,291\$45\$1,246\$6,340
3567.125%5.200%\$1,291\$38\$1,253\$5,087
3577.125%5.200%\$1,291\$30\$1,261\$3,826
3587.125%5.200%\$1,291\$23\$1,268\$2,557
3597.125%5.200%\$1,291\$15\$1,276\$1,282
3607.125%5.200%\$1,289\$8\$1,282\$0
Year 30  \$15,490\$582\$14,909
Grand
Total
\$443,603 \$268,603 \$175,000

## 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.