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ARM Payment Sensitivity Calculator

4/6/2014

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ARM could be a good mortgage option for the right families.

However, ARM's rates could change after the initial period, if you didn't read the terms carefully, you might be in for a payment shock when the rate adjusts.

Use the ARM payment sensitivity calculator below to see how your ARM loan payment may change after the initial low rate period with different rates at that time.

Note: this calculator is for fully amortized ARM loan, not for interest-only ARM loan (interest-only ARM's new payment calculation is rather simple - because you are not paying any principal, just use your loan amount times the new interest rate to get the new payments).

Second note: this calculator is only for the first year's ARM payments, as the purpose is to make sure you are aware of any possible payment shocks after the initial period expires.

Plug in your loan's amount, term, initial period rate, initial period years to the yellow area, and check the sensitivity table to see your new ARM annual and monthly payments with different rates.

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