Adjustable-Rate Mortgage Calculator
Compare a fixed-at-the-initial-rate benchmark with expected and maximum adjustable-rate mortgage paths. Model the initial fixed period, adjustment frequency, index plus margin, periodic cap, and lifetime cap. Calculate it clearly with Figur.
Adjustable-Rate Mortgage Calculator
Compare a fixed-at-the-initial-rate benchmark with expected and maximum adjustable-rate mortgage paths. Model the initial fixed period, adjustment frequency, index plus margin, periodic cap, and lifetime cap.
Method and assumptions
Figur amortizes the loan monthly. On each adjustment date it recasts the payment using the remaining balance, remaining months, and a new rate constrained by the periodic and lifetime increase caps.
- The initial benchmark holds the starting rate for the full term; it is a comparison, not a second ARM.
- The expected path holds the entered index constant and adds the margin; it does not forecast future rates.
- The maximum path raises the rate by the periodic cap at every reset until the lifetime cap is reached.
Educational estimate, not a loan quote or financial advice. ARM contracts may include floors, rounding, payment caps, conversion options, and other rules. Confirm every term with your lender.
Sources and references
Frequently asked questions
What does index plus margin mean?
At a reset, the lender generally adds its fixed margin to the current index. Contract caps can limit how far the rate moves at that adjustment and over the loan's life.
Is the expected path a forecast?
No. It holds the index at the value you enter so you can test an assumption. Real indexes can move differently before every reset.
Why does the payment change?
After a rate reset, principal and interest are recalculated from the remaining balance, new rate, and months left in the term.