10/1 ARM Mortgage Calculator

Your details

Purchase price or current appraised value of the property.
Cash you put down at closing. 20% or more eliminates PMI.
The fixed annual rate applied during the first 10 years.
%
Total repayment period. Most ARMs are written as 30-year loans.
Maximum rate increase allowed at the very first adjustment (after year 10).
%
Maximum rate change per year after the first adjustment.
%
Maximum total rate increase above the initial rate over the life of the loan.
%
Annual property tax, split into 12 equal monthly escrow amounts.
$
Annual homeowners insurance premium, also escrowed monthly.
$
Homeowners association fee, if any.
$
Annual private mortgage insurance rate. PMI is typically required when the down payment is below 20% of the home price. Set to 0 if not applicable.
%
The current 30-year fixed rate you would receive as an alternative. Used for the side-by-side comparison.
%
Currency
Initial monthly payment (P&I)Significant ARM savings (10-yr)
$1,867.43

Principal and interest during the first 10 years

Loan amount$320,000
Total initial monthly payment$2,417.43
Maximum monthly payment (P&I)$2,700.35
Maximum total monthly payment$3,250.35
Total interest paid$552,176
Total payments$872,176
Fixed-rate monthly payment$2,075.51
Fixed-rate total interest$427,185
Interest vs fixed (10 yrs)$31,948
Down payment20%
Monthly PMI$0.00
10/1 ARM$556,743.78
30-yr Fixed$431,336.02

Interest saved (10-yr window): $31,948

  • Initial monthly P&I
  • Max monthly P&I (cap)
  • Total interest (worst case)

The ARM saves about $31,948 in interest over the 10-year fixed window.

  • Your initial payment is 1,867.43 per month for the first 10 years.
  • If rates rise to the lifetime cap of 10.75%, your payment could reach 2,700.35 per month, a 44.6% increase.
  • Over just the fixed 10-year window you would save about 31,948 in interest compared with the 6.75% fixed rate.
  • If you plan to sell or refinance before year 10, a 10/1 ARM can deliver a lower payment without significant rate risk.
  • The potential payment increase after year 10 is material. Budget for the worst-case scenario before committing.

Next stepThe $208 monthly payment difference in the fixed window can be invested or used to build equity through extra principal payments, which reduces future risk if you keep the ARM.

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