In this article we will explore the ARM vs Fixed Report will provide a comparison between the two types of loans, summarizing the Loan Amount, Number of Payments, Annual Rate, APR and Monthly P & I.
What's Inside the Report
Your client’s savings if using an ARM versus Fixed Rate mortgage can be found under the Adjustable Loan tile, as seen below.
- Amortization Schedules: a snapshot for the proposed fixed and ARM loans.
- The balance difference during the ARM term is shown in between the two.
- The amount of years shown is based on the amount of years entered in the ARM term.
- The amortization schedule assumes the money saved by taking out the ARM loan is applied towards the principal payment.
- Equity gained during the ARM term: this chart shows how much equity would be gained on both the fixed and ARM loans each year. This chart also assumes the savings from taking out the ARM loan is applied towards the principal payment.
- Total Savings for ARM or Fixed Loan Options: each loan is summarized over the next three years, after the adjustable rate takes effect. Each summary shows:
- Beginning of the year loan balance
- End of Year balance
- Number of payments
- Annual rate
- Monthly/ARM P&I
- A snapshot after the ARM adjusts for the fourth time is shown. Both the fixed and ARM are summarized. Each summary shows:
- Initial loan amount
- Remaining loan balance
- Remaining payments
- Adjusted annual rate
- Monthly P & I
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