With an adjustablerate mortgage (ARM), the loan will have an initial fixedrate period. After the fixedrate period, the interest rate changes periodically, usually according to an index, and payments may go up or down accordingly. Also referred to as a variable rate mortgage.
Years  Rate  Notes 

15  3.25% 

6  5.25% 

7  7.25% 

830  8.25% 

Years  Rate  Notes 

17  3.50% 

830  5.25% 

* We are essentially assuming here that 1 year LIBOR shoots up right after the fixed period and we hit the initial cap as well as the lifetime cap at the same time.
Monthly payments do not include amounts for taxes and insurance, and thus the actual payment obligations will be greater.
Mortgage rates are based on current market rates and are subject to change without notice. The estimates produced by this calculator are for illustration only based on the preferences and financial information you entered and are not a rate lock, preapproval, or commitment to lend. In addition, we assumed a rate lock of 45 days for Purchase scenarios and 60 days for Refinance scenarios. Not all products are available in all states and for all loan amounts. Other restrictions and limitations may apply.
The APR is the annual percentage rate and reflects the effective cost of your loan on a yearly basis, taking into account such items as interest, most closing costs, discount points and loanorigination fees. For adjustable rate loans, the APR does not include the maximum interest rate of the loan. See additional disclosures regarding ARMs here.
Monthly payments do not include amounts for taxes and insurance, and thus the actual payment obligations will be greater.
Closing costs are estimated. Other fees may apply. For example, fees disclosed in a purchase contract, which are not lender fees but are required for the purchase of a property, are not included in the estimate of closing costs.
Remember, these are only estimates to help illustrate options based on the information you provided The actual terms of your loan will depend upon the specific characteristics of your loan transaction, your credit history, and your other financial characteristics. To get more accurate and personalized results, please proceed to the next step by clicking Get Started or call (844) 8467948 to talk with one of our loan specialists.
Mortgage Insurance To estimate mortgage insurance, we are using the Radian BorrowerPaid Mortgage Insurance Prime(A) rate card with the effective date of 6/20/2016. We estimate mortgage insurance premiums based on the NonFixed grid for loans greater than 20 years.
DTI for Maximum Affordability Amount  We use a debttoincome ratio of 43% when calculating the maximum home affordability amount, which is below the maximum allowable DTI ratio for Fannie Mae conventional conforming loans.