ARM payment calculator
Enter the loan's terms and your index assumption. The rate path builds as you type.
Payment in the initial rate period: -
The result is a calculation on your figures. It is not a guaranteed saving or an offer.
Your index value plus the margin, without rounding. Your note may round it, for example to the nearest eighth of a percentage point, so check the rounding rule in your note.
This is the ceiling your caps set, not a forecast. The rate only gets there if the index rises far enough.
With the ARM at the caps, its head start is not used up within the term you entered.
The rate on this loan can change after the initial rate period, and the payment can rise.
An adjustable rate can rise after the initial rate period, and so can the payment. The paths on this page are illustrations, not predictions.
Every result on this site comes from the numbers you enter and the assumptions shown.
Data used: the terms and index path you entered. The rate and costs you can actually obtain may differ.
These are the payments your terms produce along the paths shown. They are not a forecast of rates, a loan offer or a personal recommendation.
For illustrative purposes only. Not a loan offer or commitment to lend. Cindrus is not a lender, mortgage broker or loan originator, we pass no information to lenders, and no lender pays us.
Enter your adjustable-rate mortgage in Cindrus by hand. It sits in your overview in US dollars beside your home, and your net worth follows when you change the balance.
On a paid plan, Cindrus emails you before each reset with what the rate would be from the latest published index value, your margin and your caps. It is a scenario from your own figures, with the source and date of the index value, not the rate your servicer will set.
The table shows the index path you chose, the rate after caps and floor, and the new payment, recalculated over the remaining term.
| Adjustment | Starts in month | Rate | Monthly payment | Balance at start |
|---|
- The index follows exactly the path you typed.
- The payment is recalculated at every adjustment so the loan still ends on schedule.
- The balance never grows, because each payment covers the interest.
- There are no prepayments, fees or rate-lock costs.
- The initial rate applies from the first payment until the first adjustment.
Your next step.
Take the result with you.
Free. No account.
- Write down the figures you used: you find them under «Understand the number».
- Ask what it costs in total, not only what the payment will be.
- Ask whether the rate is fixed and what can change it.
- Ask for the offer in writing, so you can compare it calmly.
- Ask what is not included in the figure.
Ready to talk to the bank?
Your figures and the right questions, on one page.
- Costs and rate
- Fees and remaining balance
- The assumptions behind the figure
Follow your loan.
Your loan and your calculations, in one place.
- Your calculations saved in one place
- Your financial overview
The account is free.
The calculator is free without an account. Not personal advice.
Your bank conversation
Ask the bank about these six things.
Based on your calculation. Not personal advice.
How the adjustments are calculated
At each change date, the new rate is the index plus the margin. It is then held within the cap for that adjustment, no lower than the floor and no higher than the initial rate plus the lifetime cap.
After each adjustment, the payment is recalculated so the remaining balance is paid off over the remaining term at the new rate.
The highest path assumes the rate moves up by the full cap at every adjustment until it reaches the lifetime limit, and stays there.
The ARM comparison adds up the monthly difference between the ARM payment and the payment on a fixed-rate loan at the rate you entered, and shows when the running total turns.
Caps, margin, floor and index are set in your note and the ARM disclosure. If they differ from what you entered, your note applies.
Sources
- CFPB: «For an adjustable-rate mortgage (ARM), what are the index and margin, and how do they work?»
- CFPB: «What are rate caps with an adjustable-rate mortgage (ARM), and how do they work?»
- 12 CFR 1026.19(b) (Regulation Z) and CFPB «Consumer Handbook on Adjustable-Rate Mortgages»
- 12 CFR 1026.20 (Regulation Z), «Disclosure requirements regarding post-consummation events»