Results update as you type. Use the arrow keys to review suggestions and Enter to open one.
ARM vs Fixed Calculator
An ARM trades certainty for a lower starting rate. Whether that's smart depends almost entirely on how long you'll keep the loan and how much rate risk you can genuinely absorb.
This model shows the fixed-period savings, then what happens if the rate adjusts to its cap — the scenario worth being honest about before you sign.
Your numbers
Your results
ARM costs less over your horizon
$14,299
7 years, worst-case adjustment
- Monthly savings during the fixed period
- $170
- Savings across 7 years
- $14,299
- Fixed payment
- $2,655
- ARM starting payment
- $2,484
- ARM payment at the lifetime cap
- $3,712
- Worst-case payment increase
- $1,228
- Balance at first adjustment
- $375,639
If it adjusts to 10.875%
What happens if you change this
You expect to keep the loan 7 years, inside the 7-year fixed period — so you'd capture $14,299 in savings and never face an adjustment. That's the clean case for an ARM.
Ready for real numbers?
Estimates get you oriented. A pre-approval gets you an offer sellers take seriously.
Related calculators
- Mortgage Payment CalculatorSee your full monthly payment — principal, interest, taxes, insurance and mortgage insurance — not just principal and interest.
- Refinance CalculatorFind your true break-even point — the month the savings finally outrun the cost of refinancing.
- Rate Buy-Down CalculatorDecide whether paying points to lower your rate is worth it — and when you'd get the money back.
- APR vs Interest Rate CalculatorSee why the lowest advertised rate isn't always the cheapest loan once fees are included.
Questions people ask
- What do the numbers in a 7/6 ARM mean?
- Seven years fixed, then adjusting every six months thereafter, subject to caps on each adjustment and over the life of the loan.
- Can I refinance out of an ARM?
- Usually yes, but it isn't guaranteed — it depends on your credit, equity and market conditions at that time. Never choose an ARM assuming you'll definitely refinance.
Estimates for education only — not a loan approval, rate quote, or commitment to lend. Actual figures depend on credit, property, program guidelines, and market conditions at the time of lock. Corie Adams · NMLS #1875205 · Network Funding, LP · NMLS ID #2279 · Equal Housing Opportunity.