Corie Adams
Lending Team
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Comparison

ARM vs Fixed Calculator

An ARM trades certainty for a lower starting rate. Whether that's smart depends almost entirely on how long you'll keep the loan and how much rate risk you can genuinely absorb.

This model shows the fixed-period savings, then what happens if the rate adjusts to its cap, the scenario worth being honest about before you sign.

Your numbers

$420,000

Your results

ARM costs less over your horizon

$14,299

7 years, worst-case adjustment

Monthly savings during the fixed period
$170
Savings across 7 years
$14,299
Fixed payment
$2,655
ARM starting payment
$2,484
ARM payment at the lifetime cap
$3,712If it adjusts to 10.875%
Worst-case payment increase
$1,228
Balance at first adjustment
$375,639

What happens if you change this

You expect to keep the loan 7 years, inside the 7-year fixed period, so you'd capture $14,299 in savings and never face an adjustment. That's the clean case for an ARM.

Keep these numbers

Your results are yours already. If it helps, send them to yourself, or have Corie look at the same scenario and tell you what she would change.

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Questions people ask

What do the numbers in a 7/6 ARM mean?
Seven years fixed, then adjusting every six months thereafter, subject to caps on each adjustment and over the life of the loan.
Can I refinance out of an ARM?
Usually yes, but it isn't guaranteed, it depends on your credit, equity and market conditions at that time. Never choose an ARM assuming you'll definitely refinance.

Estimates for education only, not a loan approval, rate quote, or commitment to lend. Actual figures depend on credit, property, program guidelines, and market conditions at the time of lock. Corie Adams · NMLS #1875205 · Network Funding, LP · NMLS ID #2297 · Equal Housing Opportunity.

In plain English

It compares a fixed payment against an adjustable one, including what happens when the adjustable one adjusts.

When to use it

  • You expect to move or refinance within the fixed period
  • The rate gap between the two is unusually wide
  • You want to see the worst case before choosing

Common mistakes

Planning on refinancing later
Rates and circumstances may not cooperate. Choose a loan that works if nothing changes.
Ignoring the caps
The ceiling on adjustments is the number that matters most in a bad scenario.
Picking on the starting rate
The savings window is finite. Compare across your full expected time in the home.

Recommended next steps

  1. 01Compare full scenarios side by side
  2. 02Talk With Corie

Turn the estimate into real numbers.

A pre-approval replaces the assumptions above with your actual income, credit, and the terms available to you today.

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After the math

Where this number leads.