Fixed vs ARM Comparison – RateAdjustors

Loan Parameters

Fixed vs ARM

Loan Amount

Loan Term

yrs

Fixed Rate Loan

Fixed Rate — 6.50%

ARM Loan

ARM Starting Rate — 4.00%

Fixed Period

yrs

Lifetime Cap

Index

Margin

Head-to-Head Comparison

Fixed Rate

—

Monthly payment

—

ARM (Starting)

—

Monthly payment

—

ARM Starting Monthly Savings—

ARM After 1st Adjustment—

ARM Maximum Payment—

Extra Risk Cost vs Fixed—

Fixed Total Interest—

ARM Expected Total Interest—

Interest Cost Difference—

Payment Comparison Over Time

Fixed Rate

ARM Payment

ARM Max

Risk Tradeoff Summary

✓ Fixed Rate Advantages

✓ ARM Advantages