Compare Adjustable Rate Mortgage (ARM) vs Fixed Rate Mortgage to see which saves you money.
All calculations are done locally in your browser.
Enter your loan details, fixed rate, and ARM terms. We calculate the break-even point where the ARM becomes more expensive than the fixed rate.
An ARM is often better if you plan to sell or refinance before the fixed period ends, as the initial rate is usually lower.
If rates rise, your ARM payments will increase after the fixed period. We calculate the worst-case scenario based on your caps.
Try Mortgage Calculator, Refinance Break-Even, and PMI Drop for more scenarios.