Information and interactive calculators are made available as self-help tools for your independent use and are intended for educational purposes only. Any results are estimates and we do not guarantee their applicability or accuracy to your specific circumstances
What does this possibly mean for me?
Based on the information you provided, the amount shown above gives you an estimate of what you may need to pay each month to finance your home. The monthly payment example quoted consists of:
Principal: Repayment of a portion of the amount borrowed
Interest: The cost of borrowing the outstanding amount of these funds for one month.
Other Monthly Expenses:Includes property taxes, homeowner's insurance premiums, and maintenance costs. Mortgage insurance expenses—which you may have to pay if your downpayment is less than 20%—are not included in this calculation.
You selected an adjustable rate mortgage or ARM. The amount shown above can give you an estimate of what you'll need to pay each month to finance your home during the initial, fixed rate portion of your loan period*. Your monthly payment consists of:
Principal: Repayment of a portion of the amount borrowed.
Interest: The cost of borrowing the outstanding amount of these funds for one month during the fixed rate loan period.*
Other Monthly Expenses: Including property taxes, homeowner's insurance premiums, and maintenance costs. Mortgage insurance expenses—which you may have to pay if your downpayment is less than 20%—are not included in this calculation.
* For example, for a 5/1 ARM, the fixed rate period is 5 years, or 60 months. After the fixed rate period, your payment may change based on the change in the index used to calculate your interest rate.