Estimate monthly payments for a 10/1 Adjustable Rate Mortgage and visualize the potential 'Payment Shock' after the initial fixed period.
Mortgage Terms
First 10 years
Estimated year 11+
Payment Trajectory
Years 1-10 (Fixed)
$1,520.06
Year 11+ (Adjusted)
$1,791.38
Payment Shock+17.8%Increase in monthly payment
Payment Step-up Visualization
About this calculator
Overview
A 10/1 ARM is an adjustable-rate mortgage where the interest rate is fixed for the first 10 years and then adjusts once every year thereafter (the '1' in 10/1).
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Pro Tips
10-year ARMs typically offer lower initial rates than 30-year fixed mortgages.
If you plan to sell or refinance before the 10th year, an ARM can save you thousands in interest.
Payment Shock occurs when the interest rate resets higher, significantly increasing your monthly burden.
Most ARMs have 'caps' that limit how much the rate can increase in a single year and over the life of the loan.
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Fun Facts
Formula: The payment is calculated using standard amortization based on the remaining balance and adjusted interest rate.
