ARM Payment Shock
See what an adjustable-rate mortgage does to your payment when it resets. Enter the current balance, the rate you pay now, the months left on the loan, and the new rate at reset — it re-amortises the remaining balance over the remaining term at both rates and shows the current payment, the payment after reset, the monthly increase in dollars, and the increase as a percentage. This is payment arithmetic, not advice.
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Worked example
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Inputs
- Current balance $
280000 - Current rate %
3.5 - Remaining term (months)
240 - New rate at reset %
6.5
Frequently asked
Is this financial advice?
No. It is arithmetic on the four numbers you enter. It does not know your loan's caps, margin, index, or floor, and it is not a recommendation to refinance, sell, or hold.
What is NOT included?
Property taxes, homeowner's insurance, PMI or MIP, HOA dues, escrow, and any fee you did not enter. This is principal and interest only, so your real bill will be higher.
Why re-amortise over the remaining term?
Because that is what most ARMs do at a reset: the outstanding balance is spread over the months that are left at the new rate. That is why the jump can be larger than the rate change alone suggests.