ARM first interest-rate reset
Model the first adjustable-rate mortgage reset with the index, margin and caps written in your contract.
Your inputs
Start with the example values, then replace them with your own. For tables, keep the vertical bar separators and use a dot for decimals.
Illustrative inputs are not certified current rates or an entitlement decision. Confirm the country, year, eligibility and contract. This limited model is not a tax return, payroll service or financial/legal advice. Do not act on it without verifying the applicable rules.
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Result and workspace
Use the start button to open your result or activity.
How it works
Amortize the initial loan to the reset month. New rate is index plus margin, limited by the entered upward and lifetime caps and floor. Re-amortize the remaining balance over the remaining term. Later reset caps, rounding conventions, escrow, fees and negative amortization are outside this first-reset model.
Worked example
These sample results use the original example inputs in the form. They do not change when you edit your inputs; your own result appears in the workspace.
- Balance at first reset: 271342.5394
- First reset rate: 6 %
- Initial monthly payment: 1432.2459
- Reset monthly payment: 1748.2638
Read the result carefully
Results depend on the values and assumptions shown above. Change one input at a time to see its effect. A blank or unavailable result means the data does not support a calculation; it is not zero.