ARM vs Fixed

Compare an Adjustable Rate Mortgage to a fixed-rate loan over your stay horizon.

Loan Amount ($)

Fixed Rate (%)

ARM Initial Rate (%)

ARM Period

Rate After Adjustment (%)

Years You Plan to Stay

Cost Difference

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Fixed Total

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ARM Total

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Fixed Payment

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ARM Initial

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How it works

ARMs make sense when you'll move or refinance before the rate adjusts. Past the initial period, ARMs reset to a market index and can rise sharply. The 'rate after adjustment' here assumes a single representative rate — real ARMs have annual caps and a lifetime cap.

For informational purposes only. Not financial advice.