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## ARM - Adjustable Rate Mortgage Calculation

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 Result: Current/ Beginning Monthly Payment USD Total Repayment USD Total Interest USD Maximum Monthly Payment USD

# ARM - Adjustable Rate Mortgage Calculator

ARM - Adjustable or Variable Rate Mortgage Calculator is an online personal finance assessment tool to calculate total interest and Repayment, and the comparison between maximum monthly repayment and initial monthly payment. The loan amount, initial interest rate, loan Period, fixed interest adjustment period, interest rate adjustment and interest rate cap are the key terms to get the calculations done

ARM is an acronym for Adjustable Rate Mortgages and it is defined that any mortgage with an interest rate that adjusts according to the agreement and state of the market. Generally Adjustable or Variable rate mortgages starts from comparatively low interest rate. This makes them attractive to home buyers and remains the monthly mortgage repayment low. When borrowers sign a mortgage agreement for a variable rate mortgage, they agree to an initial rate period, which defines the stretch of the initial rate time subsequently the fixed interest rate starts to vary. This may be anywhere from one month to several years depending on the agreements of the loan. Once this initial period passes, the lender may compute the new interest rate, resulting in a higher, or lower, monthly repayment for the borrower. This refers to the loan mortgage repayment frequency with which the lender may adjust the interest rate. Adjustment periods range from once every few months to once every several years

The Important Features of ARM Adjustable Rate Mortgages
Initial Interest Rate:
This is the beginning interest rate on an ARM

This is the length of time that the interest rate or loan period on an ARM is scheduled to remain unchanged. The rate is reset at the end of this period, and the monthly loan payment is recalculated

Interest Rate Caps:
The changes on interest rate or monthly payment may changes by the end of interest rate adjustment period

Initial Interest Rate:
When borrowers sign a mortgage agreement for a variable-rate mortgage, they agree to an initial rate period, which defines how long the initial rate will last. This may be anywhere from one month to several years depending on the terms of the loan

Loan Terms:
This is the total period to pay-off your Mortgage