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ARMs have caps that limit how high your rate can go. This calculator shows your payment at the first adjustment and the maximum possible payment over the loan life.

VA Adjustable-Rate Mortgage Calculator

Calculate your adjustable-rate mortgage payments with precision

The VA Adjustable Rate Mortgage comes with guardrails that protect borrowers when rates change. One of its biggest advantages is the annual adjustment cap, which is limited to just 1%, compared to the 2% caps commonly found on conventional loans. This VA ARM Calculator is built to reflect those protections with precision. It also includes multiple payment options and extra payment features, allowing borrowers to see how different strategies can reduce interest costs and shorten the life of the loan. The amortization schedule is calculated based on the worst-case scenario.

Basic Loan Information
ARM Adjustment Details
Federal Reserve Bank of St. Louis (FRED) - 1-Year Treasury Rate:
Visit: https://fred.stlouisfed.org/series/DGS1
In the top-left corner, under "Observations," you'll see the current index rate.
Note: After the initial fixed period ends, the rate will adjust annually based on market conditions and your loan's margin. The calculation boxes below are for illustration purposes. You can edit any field to explore different scenarios, and the totals will automatically update.
Margin + Index = Interest Rate
+
=
Current Interest Rate + Annual Cap = Interest Rate
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=
Example: If initial rate is 6.5% and lifetime cap is 5%, the maximum rate is 11.5%
Optional Settings
Interest-Only Period Duration
Enter number of years for interest-only period
Note: During the interest-only period, you'll pay only the interest on the loan each month. Principal payments will begin after this period ends.

A Simple Guide to Finding Today's Index Rate

Figuring out your adjustment rate is easy! Think of it like a simple math problem: you take a number from the newspaper (the index) and add your lender's special number (the margin). The picture at the top shows you exactly how these two numbers work together.

Understanding Your ARM Calculator - What Each Box Means

1. Index Type
The index is like a thermometer for loan rates. It goes up and down based on what's happening in the money world. This number is the starting point for figuring out your real interest rate.

2. Margin
The margin is your lender's extra amount that gets added on top of the index. Think of it like a permanent add-on that never changes during your whole loan. If your margin is 2%, it will always be 2%.

3. Initial Interest Rate
This is the interest rate you start with when you first get your ARM loan. It's usually a lower "starter rate" that lasts for a little while before things can change.

4. Adjustment Period
The adjustment period is like a timer that tells you when your rate might change. After your starter period ends, your rate could go up or down every 6 months, every year, or at some other time your loan says.

5. Caps and Limits
Caps are like safety guards that protect you from big jumps in your interest rate or monthly payment. There are three different guards:

  • Initial Cap: This stops your rate from jumping too high the very first time it changes.
  • Periodic Cap: This protects you from big changes each time your rate adjusts.
  • Lifetime Cap: This is the highest your rate can ever go during your entire loan - like a ceiling, it can never break through.

6. Fully Indexed Rate
This is your real rate! You get this number by adding the index and your margin together. This is what you'll actually pay after your starter-rate period ends.

7. Payment Calculation
Your monthly payment changes based on three things: your fully indexed rate, how much you still owe, and how many years are left on your loan. You can use the calculator to see what your payment might be in different situations.

Where Do I Find the Index Rate?

1. U.S. Department of the Treasury (Official Source)
> Daily Treasury Par Yield Curve Rates: https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve
Click "Apply" and look under the one-year column. Scroll to the bottom of the table to see the current index rate.

2. Easiest Option – Federal Reserve Bank of St. Louis (FRED) < Easiest
> 1-Year Treasury Constant Maturity Rate: https://fred.stlouisfed.org/series/DGS1
In the top-left corner, under "Observations," you'll see the current index rate.