ARM vs Fixed-Rate Comparison
Compare a fixed-rate mortgage against an adjustable-rate mortgage across worst, flat, or best case rate scenarios.
Fixed Payment
$2,329
same every month
ARM Initial Payment
$2,098
teaser period only
Total Interest — Fixed
$488,281
over full term
Total Interest — ARM
$708,319
ARM costs more
Break-Even Year
Yr 8
ARM cost exceeds fixed
Max ARM Rate
11.00%
capped by lifetime cap
ARM caps explained: The initial cap limits the change at first adjustment after the teaser period. The periodic cap limits each subsequent adjustment. The lifetime cap is the maximum your rate can ever rise above the initial. The default scenario uses each cap fully under the chosen rate path.
Monthly Payment Over Time
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ARM vs Fixed Calculator results are estimates for educational and informational purposes only and do not constitute financial, tax, or legal advice. Actual outcomes will vary based on your individual circumstances. LoanPal is not a licensed financial advisor. Read full disclaimer. Consult a qualified professional before making financial decisions.