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# Comparing an ARM with a FRM

#### What This Calculator Does: This calculator compares the total cost of a new adjustable rate mortgage with that of a new fixed-rate mortgage, over a specified future period.

 Information About Yourself Is This Loan for the Purchase of a Property or a Refinance? Purchase Refinance Expected Years in House, Cannot Exceed Term Rate of Interest on Savings  (e.g. 3.5) Income Tax Bracket ( e.g. 27 ) Current Value of House (e.g. 225000) Optional:  Expected Rate of Property Value Appreciation Basic Loan Information New ARM New FR Loan Amount Initial Interest Rate on ARM — Interest Rate on FRM  (e.g. 6.00) Loan Term 40 years   30 years   25 years   20 years   15 years   10 years 40 years   30 years   25 years   20 years   15 years   10 years Mortgage Insurance (Monthly Premium Plan) Points  (\$'s or % of Loan) All Other Closing Costs Points and Costs Are: Paid in Cash  Financed Paid in Cash  Financed Optional: Number of Years Each Loans 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) Next 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 — (ARM Only - Only 2 selections allowed per run ) Stable Index: — Interest Rate Index Stays Unchanged for Life of Mortgage Worst Case: — Interest Rate Rises to the Maximum Allowable Rate in the Second Month Annual Changeto Begin in Year For x Years PercentPer Year Upward Movement: — Interest Rate Index Rises for: Downward Movement: —Interest Rate Index Declines for: Years BetweenDirection Changes Percent ChangePer Year Volatile: — Interest Rate Index Rises, Then Declines: Volatile: — Interest Rate Index Declines, Then Rises:

DO NOT USE DOLLAR SIGNS (\$), COMMAS (,) PLUS SIGNS ( + )
OR PERCENTAGE SIGNS (%) IN ANY INPUT BOXES