Our free ARM calculator for Excel that estimates the monthly payments and amortization schedule for an adjustable rate mortgage. Adjustable Rate Mortgage is one of the only ARM calculator that allows you to include additional payments. The monthly interest rate is calculated via a formula, but the rate are also input manually if require.
ARM mortgage calculator
This spreadsheet creates an amortization table and graphs for adjustable rate mortgage (ARM) loan, with optional extra payments. Estimate the maximum interest rate and monthly payment for fully amortize ARMs.
A new “Tabulate” worksheet is add that allows you to use a table to list the interest rate changes by date. Changes should be in chronological order. Interest is not calculate on daily basis. If the date does not correspond to the Payment Due date in the amortization schedule, the interest rate changes is not applicable till the next payment.
Terminal arm calculator
Columns are fixed for the basic payment tracking. The date payment that is receive or pay is for reference. When you enter the Actual Payment, the extra payment column will calculate automatically for you. The actual payment should only be the principal+interest portion. You can also edit the interest rate which is used for calculating the interest each month.
What is an Adjustable Rate Mortgage (ARM)?
There are many types of ARMs, but this spreadsheet provides a way to calculate estimated payments for a Fully Amortizing ARM. After that, the interest rate can adjust at a frequency once per year. This means that your monthly payment can change very quickly.
7 year arm calculator
If you purchase a home during a period in which interest rates are extremely low. You might expect the rates to gradually increase. When a person knows they are going to sell a home after 7 years, then a 5/1 or 7/1 ARM shall be desirable. If a person is going to own a home for more than 10 years, an ARM can be risky because they are risky. Adjustable rate mortgage loans often have lower initial interest rates.
Another reason an adjustable rate mortgage can be desirable is if the interest rates are extremely high and a person believes that the rates are gradually going to decrease over time. This would lead to a gradually lower monthly payments.