You must read the loan contract carefully and find out what index is being used, the 1-year Treasury rate is a common one. You will be paying your rate based on how that index goes up and down over the course of your loan. There are many types of ARMs out there too.
Without charts and graphs it is difficult to explain the math but more important than APR is EAR (effective annual rate).
APR is pretty much the rate per compounding cycle. Most home loans are set up this way. If you have an interest rate of 13% APR compounded monthly the EAR is closer to 13.81%. The formula is ((1+.129949/12)^12)-1 The 12s in the equation represent the monthly compounding cycle.
The ARM will be a 3/1, 5/1, 7/1, or 10/1. * the first number tells you how long the fixed interest-rate period will be * the second number tells you how often the rate will adjust after the initial period. Other Types based on 30 year loans will be 2/28, 3/27, 5/15, ect...
15 year loans 1/14, 2/13, ect....
* the first number tells you how many years the fixed interest-rate period will be * the second number tells you the number of years the rates on the loan will be adjustable These loans usually are adjusted every 6 months.
Basically all you need to know is you will be getting a pretty good deal for the first period of the loan and screwed blue in the the second period.
Take a look at http://www.federalreserve.gov/pubs/arms/arms_english.htm#types
APR on an ARM loan is kind of a strange question... if you wanted to calculate your APR, you could add all the variable interest rates you were charged over the course of a year, then divide that number by 12. Technically, that would be your APR.
An adjustable rate mortgage calculator would be of interest - and use - to you if you were the owner of an adjustable rate mortgage (a mortgage with a potentially fluxuating rate) or if you were considering the purchase of a home under the contract of an adjustable rate mortgage.
The average loans APR for mortgages will depend on which country one is in and how long the mortgage is. In the United States the average is 5.016 APR for a 30 year mortgage and 3.122 APR for a 15 year mortgage.
Mortgage APR Calculator Use this calculator to determine the Annual Percentage Rate (APR) for your mortgage. Press the report button for a full amortization schedule, either by year or by month.
The amount of mortgage each month will depend on the amount of money borrowed, the duration and APR interest on the amount. You will need these figures to calculate the amount
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APR on an ARM loan is kind of a strange question... if you wanted to calculate your APR, you could add all the variable interest rates you were charged over the course of a year, then divide that number by 12. Technically, that would be your APR.
APR Calculator for Adjustable Rate Mortgages Use this calculator to determine the Annual Percentage Rate (APR) of your Adjustable Rate Mortgage (ARM). Knowing your APR can help you compare different ARMs with different fees and terms.
An adjustable rate mortgage calculator would be of interest - and use - to you if you were the owner of an adjustable rate mortgage (a mortgage with a potentially fluxuating rate) or if you were considering the purchase of a home under the contract of an adjustable rate mortgage.
For a 30 Year Fixed Rate, the rate is 4.25% and the APR is 4.39%. For a 15 Year Fixed Rate the rate is 3.38%, the APR is 3.61%. And a 5/1 Adjustable Rate rate is 2.63%, the APR is 3.08%.
The average loans APR for mortgages will depend on which country one is in and how long the mortgage is. In the United States the average is 5.016 APR for a 30 year mortgage and 3.122 APR for a 15 year mortgage.
Adjustable Rate Mortgage Calculator Adjustable rate mortgages can provide attractive interest rates, but your payment is not fixed. This calculator helps you to determine what your adjustable mortgage payments may be.
Mortgage APR Calculator Use this calculator to determine the Annual Percentage Rate (APR) for your mortgage. Press the report button for a full amortization schedule, either by year or by month.
The amount of mortgage each month will depend on the amount of money borrowed, the duration and APR interest on the amount. You will need these figures to calculate the amount
Mortgage rates all depend on the individual. An adjustable mortgage rate let's you change the amount of your monthly payments as per your request.
Calculating APR can be done either manually or via an online APR calculator. The type of APR you are trying to calculate will determine the method which is used.
You calculate APR based on your credit score, loan size and term of loan. Typically the shorter the loan life the lower APR you will get . Annual Percentage Rate APR (Annual Percentage Rate) is a standardized term used to compare loans, mortgage loans and credit card rates. It is a compilation of the compound interest, finance charges and lender fees calculated annually. For more detailed information and to use an APR calculator visit the link in related links.