Calculate arm mortgage for real estate investments and properties
Enter the loan amount, initial interest rate, fixed period, adjustment frequency, rate caps, and margin. The calculator projects payments through rate adjustments.
A 5/1 ARM with 4% initial rate, 2% periodic cap, and 5% lifetime cap shows payment changes after the 5-year fixed period based on index movements.
The rate is fixed for the first 5 years, then adjusts annually (once per year) based on an index plus a margin.
Caps limit how much the rate can change. Common structure is 2/2/5 (2% per adjustment, 2% between adjustments, 5% lifetime maximum).
ARMs offer lower initial rates but carry rate risk. Choose an ARM if you plan to sell/refinance before the adjustment period or expect rates to fall.