Adjustable Vs Fixed Rate Mortgage Comparison Worksheet
ARM Calculator Adjustable Rate Home Loan Calculator Estimate 3/1, 5/1 from www.mortgagecalculator.org Introduction When it comes to choosing a mortgage, one of the most important decisions you'll need to make is whether to go for an adjustable rate mortgage (ARM) or a fixed rate mortgage. Both options have their pros and cons, and it's crucial to understand the differences between them before making a decision. To help you with this, we have created a comprehensive adjustable vs fixed rate mortgage comparison worksheet that will guide you through the process of evaluating these options. What is an Adjustable Rate Mortgage (ARM)? An adjustable rate mortgage (ARM) is a type of mortgage where the interest rate can change periodically. Typically, the interest rate is fixed for an initial period, usually 3, 5, 7, or 10 years, and then adjusts annually based on a specific benchmark such as the London Interbank Offered Rate (LIBOR) or the U.S. Treasury index. The adjustment is usu