APR Calculator for Adjustable Rate Mortgages
The annual percentage rate (APR) is defined as an annualized cost of credit. When it comes to mortgage financing, the APR is the actual rate of interest paid by the borrower including upfront costs such as points, closing costs, and prepaid interest. By law, a mortgage lender must disclose the APR to borrowers when quoting the interest rate. Because the APR includes other costs besides the actual amount of the mortgage, it is higher than the interest rate that is used to calculate monthly mortgage payments.
Loan information:Press spacebar to hide inputs 
Closing Costs: $4,800.00Press spacebar to show inputs 
Loan APR 4.703%

Total Payments $364,814

Principal Balance by Yearpress spacebar to show graph 
Why use the APR Calculator for Adjustable Rate Mortgages?
The APR calculator for adjustable rate mortgages will help you to determine the annual percentage rate (APR) that you will be charged for an adjustable mortgage. This calculator will also help you to calculate what the expected mortgage payment will be based on your expected rate adjustment when your mortgage rate adjusts.
How to use The APR Calculator for Adjustable Rate Mortgages
Not sure where to start? Let us help you:
 Enter the amount you intend to borrow by typing into the white box or using the slider
 Specify the number of years over which you will repay the loan
 Input the initial mortgage rate of the loan
 Enter the current index – if you are at the start of your mortgage or haven’t purchased one yet, this is likely to be the same as the starting interest rate
 Add the margin – this is a percentage that will most likely remain the same throughout the term of your mortgage. It can be added to the index to calculate the fully indexed rate
 Click the [ ] icon to expand the Adjustments section
 Add the number of months that your rate will remain fixed, and the number of months between adjustments thereafter (typically this is 12 months)
 Enter the highest percentage you expect your interest rate to change by
 In Closing Costs, enter the percentage of your property’s value you will pay as an origination fee, and input any points or other fees that need to be included
 Click View Report to see a breakdown of your results.
Who is this Calculator for?
This calculator is most useful if you:
 Know the interest rate and fees of a mortgage loan but haven’t yet been disclosed the APR
 Are looking at buying a property using an ARM
 Are planning a budget and want to take all of your fees into consideration.
I can afford this rate, what next?
Click Get FREE Quote on the orange button above – we will ask a few simple questions and before you know it, you will have our handpicked mortgage loan providers coming directly to you with their very best offers. Try it now!
What is a fully amortizing ARM?
Adjustablerate mortgages (ARMs) that are fully amortizing have a maximum interest rate which they cannot exceed. They are therefore different from standard ARMs, where the rate is fully adjustable according to the index rate at the time. ARMs are described by writing how long the rate is fixed for, and how often it will adjust for the remainder of the term. For example, a 10/1 ARM would be fixed for 10 years, and adjust every 1 year from that point onward.
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