Adjustable Rate Mortgage Calculator

Calculate payments for an adjustable-rate mortgage. See how rate changes after the introductory period impact your monthly payment.

INTRO PAYMENT

$1,703/mo

AFTER ADJUSTMENT

$2,050/mo

Payment jump: +$346/mo (20.3% increase)

Total interest: $417,150

How Adjustable Rate Mortgages Work

An ARM offers a lower fixed rate for an intro period (typically 3, 5, 7, or 10 years), then adjusts periodically based on a reference index plus a margin. Common structures:

  • 5/1 ARM: Fixed for 5 years, adjusts annually after
  • 7/6 ARM: Fixed for 7 years, adjusts every 6 months
  • 10/1 ARM: Fixed for 10 years, adjusts annually

Rate caps limit how much the rate can change: initial cap (first adjustment), periodic cap (each subsequent adjustment), and lifetime cap (maximum over the loan's life).

Adjustable Rate Mortgage Calculator FAQ

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πŸ“˜ Key Term

Floating RateAn interest rate that changes periodically based on a benchmark rate (like RBI repo rate). Floating rates are typically 1-2% lower than fixed rates. When the benchmark rate changes, your EMI or tenure adjusts accordingly. Most Indian home loans use floating rates.Read full definition β†’