How To Decide Between a Fixed and Adjustable Rate

Choose the length of the loan term you plan to use. Standard loan terms are 15 or 30 years.

Enter the annual interest rate for a fixed rate mortgage.

Choose the length of the loan term you plan to use. Standard loan terms are 15 or 30 years.

Enter the initial annual interest rate for the adjustable rate mortgage.

Enter the number of months (1-360) before the first rate adjustment is applied. For instance, 5 years would correspond to 60 months.

Enter the number of months (1-480) between each subsequent rate adjustment. For instance, 1 year would correspond to 12 months.

Do you anticipate rates will increase, decrease or stay the same over the life of the loan?

The maximum amount the mortgage interest rate may increase with each adjustment.

The lowest interest rate that can be applied during the life of the loan.

The highest interest rate that can be applied during the life of the loan.

A fixed percentage rate that is added to the index value to determine the fully-indexed interest rate.

The benchmark interest rate that reflects current market conditions and is added to the fixed margin to calculate fully-indexed interest. The index rate is variable.

How much the interest rate can adjust up or down from one adjustment period to the next.

Enter the number of months between index rate adjustments.