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ARM vs Fixed Rate Mortgage Calculator

When it comes to choosing between an adjusted-rate mortgage (ARM) or a fixed-rate mortgage, it can be difficult to know where to begin. Both ARM and fixed-rate mortgages have their benefits and potential drawbacks, but it’s important to gain a well-rounded understanding of each type of mortgage before making a decision about your home loan.

This article will provide an in-depth look at the various advantages and disadvantages of opting for an ARM or fixed-rate mortgage, as well as offer tools, like an ARM mortgage calculator, that will help you make the best decision for your future.

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How to Use the ARM vs Fixed Rate Mortgage Calculator

An ARM vs fixed mortgage calculator is an effective tool that you can use to determine which type of mortgage is best for you. An ARM vs fixed-rate mortgage calculator offers projections of your monthly payments based on the mortgage amount, term in years, interest rate, and amortization. Thanks to this helpful calculator, it’s easier than ever to decide whether an ARM or fixed-rate mortgage will best suit you and your family’s needs for a home loan.

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Commonly Asked Questions

For most buyers, obtaining a mortgage and buying a home is the largest financial undertaking they will complete in their lifetime. Homes appreciate in value and are typically considered a sound investment for most applicants.

But committing to repay a large amount of money can be confusing. Let’s look at the most commonly asked questions that pop up during the process.

An adjustable rate mortgage is a loan with a variable interest rate throughout the life of the loan. That being said, at the beginning of the loan, the interest on an ARM is fixed for a certain period of time. After that, the interest rate is periodically re-evaluated and shifts as time goes on. Typically, interest rates for ARM mortgages are low at the offset, but rise over time and may even exceed the market rate for fixed-rate loans. The term for ARM mortgages is typically 30 years.

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Conclusion

In conclusion, the primary factors for mortgage approval are credit score, income, existing debt, and down payment. As a savvy consumer, you can run scenarios with various inputs to find the right mortgage lending solution for you.

Once you procure a mortgage, be sure to pay your payments on time and include extra principal payments as available. These actions will ensure you are able to refinance should mortgage rates become more desirable.

Home-ownership is a journey and a dream for most Americans. Use the research we’ve compiled to make the most of your adventure toward owning a home.