Smart Rate Adj Mortgage vs. Fixed Rate
A fixed rate mortgage has the same payment for the entire term of the loan. A Smart Rate adjustable mortgage (ARM) has a rate that can change, causing your monthly payment to increase or decrease. Use this calculator to compare a fixed rate mortgage to two Smart Rate adjustable mortgage scenarios:
- A fully amortizing Smart Rate mortgage on which you make the minimum payments required.
- A fully amortizing Smart Rate mortgage on which you choose to make a larger, fixed payment each month. Most people want to see how quickly they can pay down their adjustable rate mortgage if they were to make the same higher payment required for a fixed rate mortgage for the same loan amount. For this reason, we have defaulted the 'Desired Fixed Monthly Payment' to the same amount as the fixed rate mortgage payment.