ARM vs Fixed Rate Calculator | Wolf Real Estate & Loans

About this estimate

An ARM starts fixed, then can change. Compare initial payment savings with the jump at the first cap; starting savings aren't a lifetime cost comparison.

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Your numbers

* Required

Loan amount *

Fixed rate *

%

Initial illustrative 6.750% interest / 6.750% APR; not a quote. This static APR applies only to the initial inputs, not your edits. ARM start rate *

%

Initial illustrative 6.125% interest / 6.125% APR (assumes no rate change); not a quote. This static APR applies only to the initial inputs, not your edits. Loan term *

years

Initial fixed period *

years

First adjustment cap *

percentage points

Lifetime cap above initial rate *

percentage points

Initial illustrative inputs only. The disclosures below do not update when you edit the calculator and are not quotes, approvals, or a promise of savings. Rates change daily. Everything stays in your browser; we don't see or store it.

Illustrative initial comparisons: $680,000.00 loan / amount financed each; $0 prepaid finance charges, points or mortgage insurance.

Fixed: 6.750% interest rate · 6.750% APR · 30-year fixed · $170,000.00 down · 360 monthly P&I payments of $4,410.47; $680,000.00 loan

ARM no-change: 6.125% initial → 6.125% later interest rate · 6.125% whole-loan scenario APR · 30-year ARM · 20% / $170,000.00 down · 84 monthly P&I payments of $4,131.75, then 276 of $4,131.75

First-cap stress test: 6.125% initial → 8.125% later interest rate · 7.074% whole-loan scenario APR · 30-year ARM · 20% / $170,000.00 down · 84 monthly P&I payments of $4,131.75, then 276 of $4,896.70

Lifetime-cap stress test: 6.125% initial → 11.125% later interest rate · 8.387% whole-loan scenario APR · 30-year ARM · 20% / $170,000.00 down · 84 monthly P&I payments of $4,131.75, then 276 of $6,144.79

Common assumptions: first payment one month after a single advance, no balloon. No-change uses an invented 3.625% index + 2.500% margin, held unchanged, no teaser discount; not lender pricing. Stress rates stay constant after year 7; lifetime stress is not an actual adjustment path or guaranteed maximum payment. ARM interest rate, APR and payment can increase; refinancing is not guaranteed. Taxes, homeowners insurance, HOA and mortgage insurance excluded; actual housing obligations will be higher. Not a quote or approval; rates change daily.

What this tells you (and what it doesn't)

An ARM starts fixed, then can change. Compare initial payment savings with the jump at the first cap; starting savings aren't a lifetime cost comparison.

The lifetime-cap illustration applies that rate to the first-reset balance and remaining term as a stress test, not an actual adjustment schedule or guaranteed worst-case payment. Could you afford it without refinancing?

Assumptions

Caps are percentage points above the initial rate, not percentage increases in payment.
First-reset payments use the remaining balance and term. Actual index, margin, floors and later caps matter. Refinancing isn't guaranteed.
Taxes, insurance, HOA, mortgage insurance, and program fees are excluded.

How ARM adjustments work

ARM vs fixed calculator ARM or fixed?

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