ARM vs. Fixed-Rate Mortgage

Compare adjustable-rate mortgages with fixed-rate mortgages to determine which option is better for you.

  • Methods explained
  • Save scenarios
  • Compare saved scenarios

Shared Loan Details

$
30 years

Fixed-Rate

%
Monthly Payment$1,896
Total Interest$382,633
Total Payment$682,633

ARM

%
5 years
%
Initial Payment$1,703
Adjusted Payment$2,050
Total Interest$417,150
Total Payment$717,150

Comparison

ARM Costs More$34,517
How it works›

Model and assumptions. Applies the entered introductory rate, adjustment assumptions and caps to the modeled payments. Amortizing payments use the remaining balance and term; interest-only payments cover interest without scheduled principal reduction. Future index rates, lender rounding and contract-specific recast rules can change the outcome.CFPB: adjustable-rate mortgagesOpenStax: annuity formulas