If you are considering a new mortgage or refinance, you can enter the loan amount and the various interest rates into this spreadsheet template, and it will calculate a comparison to show you a comparison of the interest rates, up-front costs, and monthly payments.
What is Adjustable-Rate Mortgage (ARM) ?
An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. With an adjustable-rate mortgage, the initial interest rate is fixed for a period of time. After this initial period of time, the interest rate resets periodically, at yearly or even monthly intervals. ARMs are also called variable-rate mortgages or floating mortgages. The interest rate for ARMs is reset based on a benchmark or index, plus an additional spread called an ARM margin. (Source : Investopedia)
What is Fixed Rate Mortgage ?
The term “fixed-rate mortgage” refers to a home loan that has a fixed interest rate for the entire term of the loan. This means the mortgage carries a constant interest rate from beginning to end. Terms can range anywhere between 10 and 30 years for fixed-rate mortgages, which are popular products for consumers who want to know how much they’ll pay every month. (Source : Investopedia)
About this excel template for ARM and Fixed Rate Mortgage calculator
An Adjustable Rate Mortgage (ARM) is a type of mortgage loan where the interest rate is adjusted periodically based on an index. The initial interest rate is often lower than a fixed rate mortgage, but the interest rate can increase over time, causing the monthly payment to increase as well.
A Fixed Rate Mortgage is a mortgage loan where the interest rate is fixed for the entire term of the loan, which typically ranges from 15 to 30 years. The monthly payment remains the same for the life of the loan, making it easier to budget and plan.
A mortgage excel template is a tool that can be used to compare the cost of different mortgage options, including ARMs and fixed rate mortgages. By inputting the loan amount, interest rate, and loan term, the template can calculate the monthly payment, total interest paid, and total cost of the loan. This can help borrowers make informed decisions about which type of mortgage is best for their financial situation.
In conclusion, both ARM and fixed rate mortgages have their pros and cons. It’s important to weigh these factors and use a mortgage excel template to help compare costs and determine which type of loan is best for you.
Download and use this excel template
To use this free excel template, you should have Microsoft Office/ Microsoft Excel installed in your system.
Once extracted, you can open the file using Excel and start entering data or customizing the template. You can customize the currency, color scheme, fields in this excel template as per your requirement.