Adjustable-Rate Mortgage (ARM) Calculator
Use this ARM Calculator to estimate monthly payments for an Adjustable-Rate Mortgage, including how interest rate changes affect your EMI and loan balance over time.
Initial Monthly EMI
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Max Possible Rate
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Total Interest
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Rate Progression
ARM Amortization Schedule
| Year | Principal | Interest | Total | Balance | Rate |
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What Is an Adjustable-Rate Mortgage (ARM)?
An ARM is a home loan where the interest rate is fixed for an initial period and then adjusts periodically based on market conditions.
How ARM Interest Rates Change
After the fixed period ends, the interest rate typically increases or decreases at regular intervals, subject to caps.
Who Should Consider an ARM?
- Borrowers planning to sell or refinance early
- Those expecting rising income
- Buyers seeking lower initial EMI
Frequently Asked Questions
ARMs carry rate-increase risk, but caps help limit extreme changes.
Yes, if market rates fall, ARM payments may decrease after adjustment.
The interest rate adjusts periodically based on the adjustment rule.