Adjustable rate mortgages typically offer home buyers the advantage of having a lower mortgage payment during the initial period of the mortgage. Adjustable rate mortgages typically have an initial fixed rate period of one, three, five or seven-years, after which the rate may change. Once the initial period expires, the mortgage rate will adjust to an interest rate based on the current Prime Rate. Depending on the direction interest rates are taking, these adjustments can result in higher or lower monthly payments to the borrower. This adjustable rate mortgage analyzer will help you understand the implication of your adjustable rate terms by showing what your monthly payment would be under different scenarios.
Use this calculator to compare mortgage rates.