Fixed Rate Mortgage vs. LIBOR ARM Calculator

Compare a fixed rate mortgage to a LIBOR ARM.

What This Number Means

This comparison is only one part of the decision. Before you choose a loan type, consider:

  • How the fixed rate compares to a LIBOR-indexed ARM

  • How much lower the ARM's initial payment could be

  • The risk of payment increases as the index moves

  • How your expected time in the home affects the comparison

  • Which option better fits your risk tolerance

How to Use This Calculator

1

Enter the loan amount: Input the mortgage amount you're financing.

2

Add the fixed rate: Enter the interest rate for the fixed-rate mortgage.

3

Include the LIBOR ARM terms: Enter the ARM's starting rate, margin, and adjustment terms.

4

Review the comparison: See how the fixed rate mortgage compares to a LIBOR ARM.

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