Adjustable Rate Mortgage Calculator 2026

ARM vs Fixed: When to Choose Each

Choose an ARM if: You plan to sell or refinance within the fixed period (5, 7, or 10 years). The payment savings during the initial period can be substantial — $200-$400/month on a typical loan — and if you're gone before the first adjustment, you capture all that savings with zero rate risk.

Choose a fixed rate if: You plan to stay long-term (10+ years), you prefer payment certainty for budgeting, or you believe rates will rise significantly. The peace of mind of knowing your payment forever has real value.

The break-even math: If an ARM saves you $250/month for 5 years ($15,000 total) but your first adjustment raises the payment by $300/month, you need to stay just 50 more months post-adjustment before the fixed rate would have been cheaper overall.