Adjustable Rate Mortgage (ARM) calculator

This adjustable rate mortgage (ARM) calculator can help shed some light on the possible payment results you may see over the life of your ARM.

Once you are ready, click “calculate.” Your results will show monthly payments of an entire mortgage balance.

Adjustable Rate Mortgage Calculator

Loan Amount
This is the principal amount of the loan, which is the cost of the property you are purchasing.

Interest Rate (%)
The initial annual interest rate the lender is applying to the principle.

Years
Refers to the life, or term of the loan.

Absolute Minimum Rate (%)
This refers to what the lowest interest rate on the ARM may be and is usually the rate used during the initial, or “fixed,” period of the ARM.

Absolute Maximum Rate (%)
This refers to the highest possible interest rate on the ARM may hit. Ask your Mortgage Loan Officer is the rate on your ARM is capped at a certain rate.

Months Until First Adjustment
Refers to the number of months that the rate will not change- usually referred to as the initial or “fixed” term.

Months Between Adjustments
The amount of time between possible interest rate adjustments. This is usually a period of 12 months.

Rates Will
Select “Stay the Same,” “Increase,” or “Decrease” based on information from your Mortgage Loan Officer, or your knowledge of current rate trends in your area.

Assumed Adjustment Rate (%)
As the calculator can be used to generate a series of scenarios, enter a number of expected adjustment rates to get a general idea of what to expect during the loan life.

Remember, there are many factors that determine how an ARM will act over the life of your loan. Talk to your Heritage Bank Mortgage Loan Officer for help in determining whether an ARM is right for you.