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10/1 ARM Calculator

See how your mortgage payment changes after the 10-year fixed period on a 10/1 adjustable-rate mortgage.

Rate after year 10
Max increase over initial rate
How 10/1 ARM Works:
Fixed rate for first 10 years
Then rate adjusts annually based on index + margin
Subject to caps: initial adjustment cap, annual cap, lifetime cap

Understanding 10/1 ARMs

A 10/1 ARM offers a fixed rate for the first 10 years, then adjusts annually. The initial rate is typically 0.5-1% lower than a 30-year fixed, saving money if you plan to sell or refinance within 10 years.

ARM Cap Structure (Typical: 5/2/5)

  • First adjustment: Up to 5% above initial rate
  • Annual adjustment: Up to 2% per year after
  • Lifetime cap: Up to 5% above initial rate

When a 10/1 ARM Makes Sense

  • You plan to move or refinance within 10 years
  • You expect rates to drop before adjustment
  • The rate savings is significant vs. 30-year fixed