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Monthly Payment Calculator (7b)

Adjustable Rate Mortgages
Without Negative Amortization

Who This Calculator is For: Borrowers who want to know how the interest rate
and monthly payments may change on an adjustable rate mortgage
that does not permit negative amortization.

What This Calculator Does: This calculator displays amortization schedules on an
adjustable rate mortgage that does not permit negative amortization


Enter the Following Information
Basic Loan Information
  New Loan Amount or Existing Loan Balance (e.g. 100000)  
  Initial Interest Rate on New Loan or
  Current Rate on Existing Loan  (e.g. 7.50)
  New Loan Term or
  Remaining Term on Existing Loan, in Months  (e.g. 360)
  Optional: Number of Years New Loan is Interest-Only  
Interest Rate Index
  Current Value of ARM Interest Rate Index  ( e.g 1.54 )  
  Margin That is Added to Interest Rate Index  (e.g. 2.75)  
First Rate Adjustment
   Number of Months to First Rate Adjustment  (e.g. 36)  
  Maximum Interest Rate Change on First Rate Adjustment  (e.g. 5.0)  
Subsequent Rate Adjustments
  Duration, in Months, Between Subsequent Rate Adjustments  (e.g. 12)  
  Maximum Interest Rate Change on Subsequent Rate Adjustments  (e.g. 2.0)  
Maximum / Minimum Rates
  Maximum Interest Rate Over Life of Mortgage  (e.g. 12.5)  
  Minimum Interest Rate Over Life of Mortgage  (e.g. 4.5)  
        Assumptions About Future Interest Rates
 Stable Index: — Interest Rate Index Stays Unchanged for Life of Mortgage
 Worst Case: — Interest Rate Index Rises By Maximum Allowable Amount at Each Rate Adjustment
   Annual Change
to Begin in Year
x Years
Per Year
 Upward Movement: — Index Rises:
 Downward Movement: — Index Declines:
    Years Between
Direction Changes
Percent Change
Per Year
Volatile:   Interest Rate Index Rises, Then Declines:
 Volatile:   Interest Rate Index Declines, Then Rises:


Select the specific index used by your ARM from the ARM disclosure form. To find its current value, see the sources in Adjustable Rate Mortgage Indexes. Slide mouse over yellow box at beginning of line to close pop-up. The amount that is added to the index value on a rate adjustment date. It is shown in the ARM disclosure form. On a new loan, begin with the month in which the first payment is due. On an existing loan, begin with the month when the next payment is due. On a new loan, this is the initial rate period. On an existing loan, it is the number of months until the next rate adjustment date. This is the maximum amount that the interest rate can change on the first rate adjustment. ARMs that have initial rate periods of 5 years or longer often have larger adjustment caps on the first rate adjustment than on subsequent adjustments. After the initial rate period, the rate on most ARMs changes every year, every 6 months, or every month. Select any number of interest rate scenarios. The fewer you select, the more detail is provided about each scenario. If no maximum or minimum rates are specified in your loan document, please leave these items blank. Enter 1 if you want the rate increase to begin immediately, 2 if you want it to begin at the start of year 2, and so on.