Adjustable Rate Mortgage Calculator

✖Loan Amount represents the portion of the financing that is provided through debt.ⓘ Loan Amount [P]			+10% -10%
✖Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year.ⓘ Rate of Interest per Annum [R]			+10% -10%
✖Number of Periods refers to the length of time over which one plans to save money for college expenses.ⓘ Number of Periods [np]			+10% -10%

✖Adjustable Rate Mortgage refers to the interest rate that can change periodically over the life of the loan.ⓘ Adjustable Rate Mortgage [ADRM]

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Formula

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Adjustable Rate Mortgage

Formula

`"ADRM" = (("P"*"R")*(1+"R")^("np"))/((1+"R")^("np"-1))`

Example

`"87360"=(("100000"*"0.56")*(1+"0.56")^("4"))/((1+"0.56")^("4"-1))`

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Adjustable Rate Mortgage Solution

STEP 0: Pre-Calculation Summary

Formula Used

Adjustable Rate Mortgage = ((Loan Amount*Rate of Interest per Annum)*(1+Rate of Interest per Annum)^(Number of Periods))/((1+Rate of Interest per Annum)^(Number of Periods-1))
ADRM = ((P*R)*(1+R)^(np))/((1+R)^(np-1))
This formula uses 4 Variables

Variables Used

Adjustable Rate Mortgage - Adjustable Rate Mortgage refers to the interest rate that can change periodically over the life of the loan.
Loan Amount - Loan Amount represents the portion of the financing that is provided through debt.
Rate of Interest per Annum - Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year.
Number of Periods - Number of Periods refers to the length of time over which one plans to save money for college expenses.

STEP 1: Convert Input(s) to Base Unit

Loan Amount: 100000 --> No Conversion Required
Rate of Interest per Annum: 0.56 --> No Conversion Required
Number of Periods: 4 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ADRM = ((P*R)*(1+R)^(np))/((1+R)^(np-1)) --> ((100000*0.56)*(1+0.56)^(4))/((1+0.56)^(4-1))

Evaluating ... ...

ADRM = 87360

STEP 3: Convert Result to Output's Unit

87360 --> No Conversion Required

FINAL ANSWER

87360 <-- Adjustable Rate Mortgage

(Calculation completed in 00.004 seconds)

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Balloon Mortgage

Go Balloon Mortgage = Present Value of Original Balance*(1+Rate of Interest per Annum)^Frequency of Payments-Payment*((1+Rate of Interest per Annum)^Frequency of Payments-1/Rate of Interest per Annum)

Adjustable Rate Mortgage

Go Adjustable Rate Mortgage = ((Loan Amount*Rate of Interest per Annum)*(1+Rate of Interest per Annum)^(Number of Periods))/((1+Rate of Interest per Annum)^(Number of Periods-1))

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Adjustable Rate Mortgage Formula

What do you mean by Adjustable Rate Mortgage ?

Adjustable Rate Mortgage refers to the computation of the periodical installment amount wherein interest rate changes after fixed intervals throughout the borrowing period. It starts with an initial fixed interest rate period, during which the interest rate remains constant. This period is often set for a certain number of years, such as 3, 5, 7, or 10 years. After the initial fixed period, the interest rate on the ARM may adjust periodically. The adjustment period is the interval at which the interest rate changes, typically once per year, although it can vary depending on the terms of the loan. Adjustable rate mortgages offer both advantages and risks. The initial fixed-rate period often provides lower initial interest rates compared to fixed-rate mortgages, making them beneficial to borrowers who plan to sell or refinance before the first rate adjustment. However, borrowers should be aware of the potential for higher payments if interest rates rise after the initial period ends.

How to Calculate Adjustable Rate Mortgage?

Adjustable Rate Mortgage calculator uses Adjustable Rate Mortgage = ((Loan Amount*Rate of Interest per Annum)*(1+Rate of Interest per Annum)^(Number of Periods))/((1+Rate of Interest per Annum)^(Number of Periods-1)) to calculate the Adjustable Rate Mortgage, Adjustable Rate Mortgage is the interest rate that adjusts based on a predetermined index or benchmark rate. Adjustable Rate Mortgage is denoted by ADRM symbol.

How to calculate Adjustable Rate Mortgage using this online calculator? To use this online calculator for Adjustable Rate Mortgage, enter Loan Amount (P), Rate of Interest per Annum (R) & Number of Periods (np) and hit the calculate button. Here is how the Adjustable Rate Mortgage calculation can be explained with given input values -> 87360 = ((100000*0.56)*(1+0.56)^(4))/((1+0.56)^(4-1)).

FAQ

What is Adjustable Rate Mortgage?

Adjustable Rate Mortgage is the interest rate that adjusts based on a predetermined index or benchmark rate and is represented as ADRM = ((P*R)*(1+R)^(np))/((1+R)^(np-1)) or Adjustable Rate Mortgage = ((Loan Amount*Rate of Interest per Annum)*(1+Rate of Interest per Annum)^(Number of Periods))/((1+Rate of Interest per Annum)^(Number of Periods-1)). Loan Amount represents the portion of the financing that is provided through debt, Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year & Number of Periods refers to the length of time over which one plans to save money for college expenses.

How to calculate Adjustable Rate Mortgage?

Adjustable Rate Mortgage is the interest rate that adjusts based on a predetermined index or benchmark rate is calculated using Adjustable Rate Mortgage = ((Loan Amount*Rate of Interest per Annum)*(1+Rate of Interest per Annum)^(Number of Periods))/((1+Rate of Interest per Annum)^(Number of Periods-1)). To calculate Adjustable Rate Mortgage, you need Loan Amount (P), Rate of Interest per Annum (R) & Number of Periods (np). With our tool, you need to enter the respective value for Loan Amount, Rate of Interest per Annum & Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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