Compare the monthly payments, loan balances, and total costs of a fixed-rate mortgage against an adjustable-rate mortgage under your own rate assumptions.
The amount you plan to borrow, used for both the fixed- and adjustable-rate scenarios.
The current published benchmark rate the adjustable loan is tied to.
Current Index Rate
The markup your lender adds on top of the index rate to set your adjustable rate.
Lenders Margin
The assumed change in the index rate at each adjustment date.
Index Rate Adjustment
How often the index rate itself is assumed to change.
Your assumption about whether rates will stay flat, rise, or fall over the loan's life.
The largest amount the adjustable rate is assumed to move in any one year.
The floor below which the adjustable rate cannot fall, regardless of the index.
The ceiling (lifetime cap) above which the adjustable rate cannot rise.
How long the initial adjustable rate holds before the first scheduled change.
How often the adjustable rate resets after the first adjustment.
The horizon over which total costs of the two loans are compared, which may be shorter than either loan's full term.
How you want to value the cash-flow differences between the two loans when comparing their total cost.
Cost Of Money
A rate you supply directly when the comparison option calls for a manually entered rate instead of a loan rate.
Your marginal tax rate, used if the comparison accounts for the tax treatment of mortgage interest.
Table of Federal Income Brackets and Rates. Tax Rate For Single Filers For Married Individuals Filing Joint Returns For Heads of Households 10% $0 to $11,925 $0 to $23,850 $0 to $17,000 12% $11,925 to $48,475 $23,850 to $96,950 $17,000 to $64,850 22% $48,475 to $103,350 $96,950 to $206,700 $64,850 to $103,350 24% $103,350 to $197,300 $206,700 to $394,600 $103,350 to $197,300 32% $197,300 to $250,525 $394,600 to $501,050 $197,300 to $250,500 35% $250,525 to $626,350 $501,050 to $751,600 $250,500 to $626,350 37% $626,350 or more $751,600 or more $626,350 or more.