Compare ARM vs Fixed-Rate mortgages and find the break-even interest rate
(Adjustable Rate Mortgage)
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How to read this chart: This shows the total interest you'll pay over the life of each loan at different ARM reset rates. The green line represents the ARM total interest, the brown dashed line represents the fixed-rate total interest (which doesn't change). Where the lines cross is your break-even point - the ARM reset rate at which both mortgages cost the same in total interest. If rates reset below this point, the ARM saves you money. Above this point, the fixed-rate is better.
Explore month-by-month breakdown of your mortgage payments, showing exactly how principal and interest evolve over time.
The ARM payment tables show what happens when your rate adjusts after year 7. Choose which reset rate to analyze:
| Month | Payment | Principal | Interest | Extra Principal | Balance | Cumulative Interest |
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Educational Purpose Only: This calculator is provided strictly for educational and informational purposes. It should not be regarded as legal, personal financial, or tax advice.
Tax Deductibility Not Included: This analysis does not take into account the tax deductibility of mortgage interest, which may significantly impact the actual cost of each mortgage option.
Simplified Assumptions: Does not account for: closing costs, points, prepayment penalties, rate caps on ARMs, insurance, property taxes, or HOA fees.
Consult Professionals: Before making any mortgage decisions, please consult with qualified financial advisors, tax professionals, and legal counsel.
No Guarantees: Future interest rates cannot be predicted with certainty. The break-even analysis shows theoretical rates, but actual market conditions may differ significantly.