Home & Mortgage Calculators

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Which is Better: Fixed or Adjustable-Rate Mortgage?

It is a difficult decision to decide between a fixed and an adjustable-rate mortgage. Factors such as loan duration, the index used by the lender, the number and timing of rate adjustments, and your assumption about the increase/decrease of future interest rates all have an impact. Use this calculator to help compare the total cost of each alternative.
Mortgage Alternatives and Assumptions
Loan amount  
Fixed-Rate LoanAdjustable-Rate Loan
(Initial) annual interest rate: (%)
Number of years
Index Rate Detail
Current index rate: (%)  
Lenders margin added to index rate: (%)  
Index rate adjustment: (%)  
Number of months between index rate adjustments  
What will rates be doing over the life of the loan: stay same, increase or decrease?  
Assumed maximum annual rate adjustment: (%)  
Adjustable Rate Detail
Absolute minimum rate over term of loan: (%)  
Absolute maximum rate over term of loan: (%)  
Number of months before first rate adjustments  
Number of months between rate adjustments  
Comparison Assumptions
Comparison options/cost of money: (%) help
 
Marginal tax bracket: (%) help
Years to compare total costs:  

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