ARM vs. Fixed Rate Simulator
Simulate how an adjustable-rate mortgage performs against a fixed rate over time. Model different rate adjustment scenarios to see when an ARM saves money and when it doesn't.
ARM vs Fixed-Rate Simulator
Fixed Period
ARM Savings During 5-Year Fixed Period
$9,202
$153/mo less than fixed
Fixed-rate payment (30 years)$1,970/mo
Fixed total interest$389,306
After the Fixed Period
Rates Rise
+2%/yr to cap
Year 1$1,817
Peak Payment$2,774
Peak YearYear 30
Total Interest$611,659
vs Fixed+$222,352
Rates Flat
Stay at 5.5%
Year 1$1,817
Peak Payment$1,817
Peak YearYear 30
Total Interest$334,093
vs FixedSave $55,213
Rates Fall
-0.5%/yr (floor 3%)
Year 1$1,817
Peak Payment$1,817
Peak YearYear 5
Total Interest$226,248
vs FixedSave $163,058