10/1 ARM Calculator

Estimate monthly payments for a 10/1 Adjustable Rate Mortgage and visualize the potential 'Payment Shock' after the initial fixed period.

Mortgage Terms

Loan Amount ($)

Initial Rate (%)

First 10 years

Adjusted Rate (%)

Estimated year 11+

Loan Term (Years)

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

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.

Fun Facts

Formula: The payment is calculated using standard amortization based on the remaining balance and adjusted interest rate.

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