Option ARM Vs. Fixed-Rate Mortgage Calculator

Topics:
Quantitative Analysis,
Tools and Templates
Tags:
ARM,
Bankrate Inc.,
Capital Structures,
Finance,
Mortgages,
Operational Accounting,
Payment
Source:
Bankrate

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Overview: A fixed-rate mortgage has the same payment for the entire term of the loan. The option ARM uses a low initial rate to calculate your initial minimum monthly payment. Although the interest rate will increase after one to three months, your low payment will remain fixed for the entire year. This can produce a much lower monthly payment than a traditional fixed-rate mortgage or even an Adjustable-Rate Mortgage (ARM).

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Format: HTML | Date: Jan 2009

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