Finance Tools
Fixed vs ARM Rate Difference Calculator
Compare fixed-rate and adjustable-rate mortgages (ARM) to see how rate structure differences affect monthly payments and interest.
Fixed-rate and adjustable-rate mortgages differ mainly in how their interest rates behave over time. This calculator compares their monthly payments under different rate scenarios.
How to use this fixed vs arm rate difference calculator
- Enter your loan amount and term.
- Enter the fixed mortgage rate.
- Enter the initial ARM rate and the expected ARM rate after adjustment.
- Click Calculate to compare payments and see the impact of rate structure differences.
Example
Suppose you are choosing between a fixed-rate mortgage and an ARM.
- Loan amount: $300,000, term: 30 years
- Fixed rate: 7.00%
- ARM initial rate: 5.75%
- Expected ARM adjusted rate: 7.50%
- This tool compares monthly payments under each rate structure.
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