Calculator for Adjustable-Rate Mortgages: How Much Will Your Payments Be?

Use the free loan payment calculator on NerdWallet to learn more about mortgage payments. To find out if you're paying too much for a new house or pushing your budget too far, enter your home's price, down payment, and mortgage terms. Property taxes and homeowner's insurance are not factored into this mortgage calculator and are not normally covered by your monthly payment. However, if applicable, mortgage insurance is included.

Rate of Interest

The cost of borrowing money, stated as a percentage, is the interest rate on your mortgage. However, depending on loan expenses such as loan origination fees, broker commissions, or pre-paid interest, the real amount you pay can be higher. Based on the loan amount, starting balance, and initial yearly interest rate, this calculator displays your interest rate as well as your monthly principal and interest payment. You can specify how many months the mortgage will stay fixed until the first rate change in the "months between adjustments" area if you pick an adjustable-rate mortgage. Your interest rate and payments will then change on a predetermined schedule after that. You can also determine whether your budget can support an ARM's interest rate sensitivity by using the mortgage payment calculator. It assists you in determining whether it makes sense to make additional principal payments, which can be made on a monthly, yearly, or one-time basis, and how a rate reduction might impact your monthly mortgage payment.

Cash

Based on the loan amount, initial interest rate, and number of years remaining in the loan term, this mortgage payment calculator calculates your estimated monthly principal and interest payments. An amortization table and a monthly payment schedule are also displayed. With different interest rates and loan lengths, the tool computes both an adjustable-rate mortgage and a traditional fixed-rate loan. It also has a part where you may estimate property taxes and homeowner's insurance, which might raise your monthly mortgage payment. This mortgage payment calculator makes the assumption that the loan amount will be 100% of the amount you paid for your house when you bought it or the amount you saved for a down payment. Loan fees that would raise your expenses, including origination or prepayment penalties, are not included in this tool. Other home costs like utilities, property taxes, and upkeep should also be taken into account. It is often advised by experts that your total mortgage payment should not be more than 28% of your gross income.

Modifications to Payment

Based on your starting balance and interest rate, a mortgage payment calculator calculates the monthly core principle and interest payment that you will make. However, adjustment periods, limitations, and margins associated with ARMs have the potential to change your monthly payment amount. The objective of conventional mortgages is to limit your housing expenses to no more than 28% of your income and your total debt, which includes credit card debt, auto loans, and house payments, to 36% of your income. You can use a loan payment calculator to find out if you can afford the monthly payments and have enough income to be eligible for a mortgage. In addition to allowing you to compare fixed rates to ARMs (which include fully amortizing and interest-only choices), this mortgage payment calculator also explains how changes in the underlying interest rate may affect your payment. Other costs associated with owning, such as property taxes, homeowners insurance, and HOA dues, also affect your monthly payment amounts.

Total Amount Due

Your mortgage interest, principle, and other fees add up to the total payment amount associated with an adjustable-rate mortgage (ARM). An excellent tool to evaluate how these factors impact your monthly payments is an amortization calculator. The house loan calculator on Bankrate offers personalized information based on your particular circumstances, but it also makes some assumptions about you. It is assumed, for instance, that you have sufficient funds for a down payment and closing costs and that you are purchasing a single-family home to serve as your primary dwelling. The estimated average national buy mortgage rate from our daily lender survey—which we publish as the Bankrate® Mortgage Rate Table—is included in the loan computation. In addition, it projects that your monthly payments will cover property taxes, homeowners insurance, and homeowners association dues. It also assumes that you will put down at least 3% of the purchase price. Although these presumptions may not apply to any specific homeowner, they do give you a decent idea of what to expect in general when using this mortgage calculator.