1/1 ARM - Example

A 1/1 ARM is often called a 1 year ARM. It commonly refers to an adjustable rate mortgage with an interest rate that is fixed for 1 year and that adjusts annually after that.

In this example, we look at a 1 year ARM for $270,000 with a starting interest rate of 6.875%. It has a 2% cap on each adjustment. It has no floor rate and a lifetime maximum interest rate of 12.875%. The index and margin are 5.2% and 1.675% respectively.

After reviewing this example enter your mortgage information in the adjustable rate calculator or explore the other examples.

Adjustable Rate Calculator
If the index rate remains stable over the life of the loan you would end up paying $368,533 in total interest.
 Stable
MonthInterest
Rate
Index
Rate
Payment Interest Principal Balance
16.875%5.200%$1,774$1,547$227$269,773
26.875%5.200%$1,774$1,546$228$269,545
36.875%5.200%$1,774$1,544$229$269,316
46.875%5.200%$1,774$1,543$231$269,085
56.875%5.200%$1,774$1,542$232$268,853
66.875%5.200%$1,774$1,540$233$268,619
76.875%5.200%$1,774$1,539$235$268,385
86.875%5.200%$1,774$1,538$236$268,149
96.875%5.200%$1,774$1,536$237$267,911
106.875%5.200%$1,774$1,535$239$267,672
116.875%5.200%$1,774$1,534$240$267,432
126.875%5.200%$1,774$1,532$242$267,191
Year 1  $21,285$18,475$2,809 
136.875%5.200%$1,774$1,531$243$266,948
146.875%5.200%$1,774$1,529$244$266,703
156.875%5.200%$1,774$1,528$246$266,458
166.875%5.200%$1,774$1,527$247$266,210
176.875%5.200%$1,774$1,525$249$265,962
186.875%5.200%$1,774$1,524$250$265,712
196.875%5.200%$1,774$1,522$251$265,461
206.875%5.200%$1,774$1,521$253$265,208
216.875%5.200%$1,774$1,519$254$264,953
226.875%5.200%$1,774$1,518$256$264,698
236.875%5.200%$1,774$1,516$257$264,440
246.875%5.200%$1,774$1,515$259$264,182
Year 2  $21,285$18,276$3,009 
256.875%5.200%$1,774$1,514$260$263,922
266.875%5.200%$1,774$1,512$262$263,660
276.875%5.200%$1,774$1,511$263$263,397
286.875%5.200%$1,774$1,509$265$263,132
296.875%5.200%$1,774$1,508$266$262,866
306.875%5.200%$1,774$1,506$268$262,598
316.875%5.200%$1,774$1,504$269$262,329
326.875%5.200%$1,774$1,503$271$262,058
336.875%5.200%$1,774$1,501$272$261,786
346.875%5.200%$1,774$1,500$274$261,512
356.875%5.200%$1,774$1,498$275$261,236
366.875%5.200%$1,774$1,497$277$260,959
Year 3  $21,285$18,062$3,222 
376.875%5.200%$1,774$1,495$279$260,681
386.875%5.200%$1,774$1,493$280$260,401
396.875%5.200%$1,774$1,492$282$260,119
406.875%5.200%$1,774$1,490$283$259,835
416.875%5.200%$1,774$1,489$285$259,550
426.875%5.200%$1,774$1,487$287$259,264
436.875%5.200%$1,774$1,485$288$258,975
446.875%5.200%$1,774$1,484$290$258,685
456.875%5.200%$1,774$1,482$292$258,394
466.875%5.200%$1,774$1,480$293$258,100
476.875%5.200%$1,774$1,479$295$257,805
486.875%5.200%$1,774$1,477$297$257,508
Year 4  $21,285$17,834$3,451 
496.875%5.200%$1,774$1,475$298$257,210
506.875%5.200%$1,774$1,474$300$256,910
516.875%5.200%$1,774$1,472$302$256,608
526.875%5.200%$1,774$1,470$304$256,305
536.875%5.200%$1,774$1,468$305$255,999
546.875%5.200%$1,774$1,467$307$255,692
556.875%5.200%$1,774$1,465$309$255,383
566.875%5.200%$1,774$1,463$311$255,073
576.875%5.200%$1,774$1,461$312$254,760
586.875%5.200%$1,774$1,460$314$254,446
596.875%5.200%$1,774$1,458$316$254,130
606.875%5.200%$1,774$1,456$318$253,813
Year 5  $21,285$17,589$3,696 
616.875%5.200%$1,774$1,454$320$253,493
626.875%5.200%$1,774$1,452$321$253,172
636.875%5.200%$1,774$1,450$323$252,848
646.875%5.200%$1,774$1,449$325$252,523
656.875%5.200%$1,774$1,447$327$252,196
666.875%5.200%$1,774$1,445$329$251,868
676.875%5.200%$1,774$1,443$331$251,537
686.875%5.200%$1,774$1,441$333$251,204
696.875%5.200%$1,774$1,439$335$250,870
706.875%5.200%$1,774$1,437$336$250,533
716.875%5.200%$1,774$1,435$338$250,195
726.875%5.200%$1,774$1,433$340$249,855
Year 6  $21,285$17,326$3,958 
736.875%5.200%$1,774$1,431$342$249,512
746.875%5.200%$1,774$1,430$344$249,168
756.875%5.200%$1,774$1,428$346$248,822
766.875%5.200%$1,774$1,426$348$248,474
776.875%5.200%$1,774$1,424$350$248,124
786.875%5.200%$1,774$1,422$352$247,771
796.875%5.200%$1,774$1,420$354$247,417
806.875%5.200%$1,774$1,417$356$247,061
816.875%5.200%$1,774$1,415$358$246,703
826.875%5.200%$1,774$1,413$360$246,342
836.875%5.200%$1,774$1,411$362$245,980
846.875%5.200%$1,774$1,409$364$245,616
Year 7  $21,285$17,046$4,239 
856.875%5.200%$1,774$1,407$367$245,249
866.875%5.200%$1,774$1,405$369$244,880
876.875%5.200%$1,774$1,403$371$244,510
886.875%5.200%$1,774$1,401$373$244,137
896.875%5.200%$1,774$1,399$375$243,762
906.875%5.200%$1,774$1,397$377$243,385
916.875%5.200%$1,774$1,394$379$243,005
926.875%5.200%$1,774$1,392$381$242,624
936.875%5.200%$1,774$1,390$384$242,240
946.875%5.200%$1,774$1,388$386$241,854
956.875%5.200%$1,774$1,386$388$241,466
966.875%5.200%$1,774$1,383$390$241,076
Year 8  $21,285$16,745$4,540 
976.875%5.200%$1,774$1,381$393$240,683
986.875%5.200%$1,774$1,379$395$240,289
996.875%5.200%$1,774$1,377$397$239,892
1006.875%5.200%$1,774$1,374$399$239,492
1016.875%5.200%$1,774$1,372$402$239,091
1026.875%5.200%$1,774$1,370$404$238,687
1036.875%5.200%$1,774$1,367$406$238,280
1046.875%5.200%$1,774$1,365$409$237,872
1056.875%5.200%$1,774$1,363$411$237,461
1066.875%5.200%$1,774$1,360$413$237,048
1076.875%5.200%$1,774$1,358$416$236,632
1086.875%5.200%$1,774$1,356$418$236,214
Year 9  $21,285$16,423$4,862 
1096.875%5.200%$1,774$1,353$420$235,794
1106.875%5.200%$1,774$1,351$423$235,371
1116.875%5.200%$1,774$1,348$425$234,946
1126.875%5.200%$1,774$1,346$428$234,518
1136.875%5.200%$1,774$1,344$430$234,088
1146.875%5.200%$1,774$1,341$433$233,655
1156.875%5.200%$1,774$1,339$435$233,220
1166.875%5.200%$1,774$1,336$438$232,783
1176.875%5.200%$1,774$1,334$440$232,343
1186.875%5.200%$1,774$1,331$443$231,900
1196.875%5.200%$1,774$1,329$445$231,455
1206.875%5.200%$1,774$1,326$448$231,007
Year 10  $21,285$16,078$5,207 
1216.875%5.200%$1,774$1,323$450$230,557
1226.875%5.200%$1,774$1,321$453$230,104
1236.875%5.200%$1,774$1,318$455$229,649
1246.875%5.200%$1,774$1,316$458$229,191
1256.875%5.200%$1,774$1,313$461$228,730
1266.875%5.200%$1,774$1,310$463$228,267
1276.875%5.200%$1,774$1,308$466$227,801
1286.875%5.200%$1,774$1,305$469$227,332
1296.875%5.200%$1,774$1,302$471$226,861
1306.875%5.200%$1,774$1,300$474$226,387
1316.875%5.200%$1,774$1,297$477$225,910
1326.875%5.200%$1,774$1,294$479$225,431
Year 11  $21,285$15,708$5,576 
1336.875%5.200%$1,774$1,292$482$224,949
1346.875%5.200%$1,774$1,289$485$224,464
1356.875%5.200%$1,774$1,286$488$223,976
1366.875%5.200%$1,774$1,283$491$223,486
1376.875%5.200%$1,774$1,280$493$222,992
1386.875%5.200%$1,774$1,278$496$222,496
1396.875%5.200%$1,774$1,275$499$221,997
1406.875%5.200%$1,774$1,272$502$221,495
1416.875%5.200%$1,774$1,269$505$220,991
1426.875%5.200%$1,774$1,266$508$220,483
1436.875%5.200%$1,774$1,263$511$219,972
1446.875%5.200%$1,774$1,260$513$219,459
Year 12  $21,285$15,313$5,972 
1456.875%5.200%$1,774$1,257$516$218,943
1466.875%5.200%$1,774$1,254$519$218,423
1476.875%5.200%$1,774$1,251$522$217,901
1486.875%5.200%$1,774$1,248$525$217,376
1496.875%5.200%$1,774$1,245$528$216,847
1506.875%5.200%$1,774$1,242$531$216,316
1516.875%5.200%$1,774$1,239$534$215,781
1526.875%5.200%$1,774$1,236$537$215,244
1536.875%5.200%$1,774$1,233$541$214,703
1546.875%5.200%$1,774$1,230$544$214,160
1556.875%5.200%$1,774$1,227$547$213,613
1566.875%5.200%$1,774$1,224$550$213,063
Year 13  $21,285$14,889$6,396 
1576.875%5.200%$1,774$1,221$553$212,510
1586.875%5.200%$1,774$1,218$556$211,954
1596.875%5.200%$1,774$1,214$559$211,395
1606.875%5.200%$1,774$1,211$563$210,832
1616.875%5.200%$1,774$1,208$566$210,266
1626.875%5.200%$1,774$1,205$569$209,697
1636.875%5.200%$1,774$1,201$572$209,125
1646.875%5.200%$1,774$1,198$576$208,549
1656.875%5.200%$1,774$1,195$579$207,970
1666.875%5.200%$1,774$1,192$582$207,388
1676.875%5.200%$1,774$1,188$586$206,802
1686.875%5.200%$1,774$1,185$589$206,214
Year 14  $21,285$14,435$6,850 
1696.875%5.200%$1,774$1,181$592$205,621
1706.875%5.200%$1,774$1,178$596$205,026
1716.875%5.200%$1,774$1,175$599$204,427
1726.875%5.200%$1,774$1,171$603$203,824
1736.875%5.200%$1,774$1,168$606$203,218
1746.875%5.200%$1,774$1,164$609$202,609
1756.875%5.200%$1,774$1,161$613$201,996
1766.875%5.200%$1,774$1,157$616$201,379
1776.875%5.200%$1,774$1,154$620$200,759
1786.875%5.200%$1,774$1,150$624$200,136
1796.875%5.200%$1,774$1,147$627$199,509
1806.875%5.200%$1,774$1,143$631$198,878
Year 15  $21,285$13,949$7,336 
1816.875%5.200%$1,774$1,139$634$198,244
1826.875%5.200%$1,774$1,136$638$197,606
1836.875%5.200%$1,774$1,132$642$196,964
1846.875%5.200%$1,774$1,128$645$196,319
1856.875%5.200%$1,774$1,125$649$195,670
1866.875%5.200%$1,774$1,121$653$195,017
1876.875%5.200%$1,774$1,117$656$194,361
1886.875%5.200%$1,774$1,114$660$193,701
1896.875%5.200%$1,774$1,110$664$193,037
1906.875%5.200%$1,774$1,106$668$192,369
1916.875%5.200%$1,774$1,102$672$191,697
1926.875%5.200%$1,774$1,098$675$191,022
Year 16  $21,285$13,428$7,856 
1936.875%5.200%$1,774$1,094$679$190,342
1946.875%5.200%$1,774$1,090$683$189,659
1956.875%5.200%$1,774$1,087$687$188,972
1966.875%5.200%$1,774$1,083$691$188,281
1976.875%5.200%$1,774$1,079$695$187,586
1986.875%5.200%$1,774$1,075$699$186,887
1996.875%5.200%$1,774$1,071$703$186,184
2006.875%5.200%$1,774$1,067$707$185,477
2016.875%5.200%$1,774$1,063$711$184,766
2026.875%5.200%$1,774$1,059$715$184,051
2036.875%5.200%$1,774$1,054$719$183,332
2046.875%5.200%$1,774$1,050$723$182,608
Year 17  $21,285$12,871$8,414 
2056.875%5.200%$1,774$1,046$728$181,881
2066.875%5.200%$1,774$1,042$732$181,149
2076.875%5.200%$1,774$1,038$736$180,413
2086.875%5.200%$1,774$1,034$740$179,673
2096.875%5.200%$1,774$1,029$744$178,929
2106.875%5.200%$1,774$1,025$749$178,180
2116.875%5.200%$1,774$1,021$753$177,427
2126.875%5.200%$1,774$1,017$757$176,670
2136.875%5.200%$1,774$1,012$762$175,908
2146.875%5.200%$1,774$1,008$766$175,143
2156.875%5.200%$1,774$1,003$770$174,372
2166.875%5.200%$1,774$999$775$173,598
Year 18  $21,285$12,274$9,011 
2176.875%5.200%$1,774$995$779$172,818
2186.875%5.200%$1,774$990$784$172,035
2196.875%5.200%$1,774$986$788$171,247
2206.875%5.200%$1,774$981$793$170,454
2216.875%5.200%$1,774$977$797$169,657
2226.875%5.200%$1,774$972$802$168,855
2236.875%5.200%$1,774$967$806$168,049
2246.875%5.200%$1,774$963$811$167,238
2256.875%5.200%$1,774$958$816$166,422
2266.875%5.200%$1,774$953$820$165,602
2276.875%5.200%$1,774$949$825$164,777
2286.875%5.200%$1,774$944$830$163,948
Year 19  $21,285$11,635$9,650 
2296.875%5.200%$1,774$939$834$163,113
2306.875%5.200%$1,774$934$839$162,274
2316.875%5.200%$1,774$930$844$161,430
2326.875%5.200%$1,774$925$849$160,581
2336.875%5.200%$1,774$920$854$159,727
2346.875%5.200%$1,774$915$859$158,869
2356.875%5.200%$1,774$910$864$158,005
2366.875%5.200%$1,774$905$868$157,137
2376.875%5.200%$1,774$900$873$156,263
2386.875%5.200%$1,774$895$878$155,385
2396.875%5.200%$1,774$890$883$154,501
2406.875%5.200%$1,774$885$889$153,613
Year 20  $21,285$10,950$10,335 
2416.875%5.200%$1,774$880$894$152,719
2426.875%5.200%$1,774$875$899$151,820
2436.875%5.200%$1,774$870$904$150,917
2446.875%5.200%$1,774$865$909$150,007
2456.875%5.200%$1,774$859$914$149,093
2466.875%5.200%$1,774$854$920$148,174
2476.875%5.200%$1,774$849$925$147,249
2486.875%5.200%$1,774$844$930$146,319
2496.875%5.200%$1,774$838$935$145,383
2506.875%5.200%$1,774$833$941$144,443
2516.875%5.200%$1,774$828$946$143,496
2526.875%5.200%$1,774$822$952$142,545
Year 21  $21,285$10,216$11,068 
2536.875%5.200%$1,774$817$957$141,588
2546.875%5.200%$1,774$811$963$140,625
2556.875%5.200%$1,774$806$968$139,657
2566.875%5.200%$1,774$800$974$138,684
2576.875%5.200%$1,774$795$979$137,704
2586.875%5.200%$1,774$789$985$136,720
2596.875%5.200%$1,774$783$990$135,729
2606.875%5.200%$1,774$778$996$134,733
2616.875%5.200%$1,774$772$1,002$133,731
2626.875%5.200%$1,774$766$1,008$132,724
2636.875%5.200%$1,774$760$1,013$131,710
2646.875%5.200%$1,774$755$1,019$130,691
Year 22  $21,285$9,431$11,853 
2656.875%5.200%$1,774$749$1,025$129,666
2666.875%5.200%$1,774$743$1,031$128,635
2676.875%5.200%$1,774$737$1,037$127,599
2686.875%5.200%$1,774$731$1,043$126,556
2696.875%5.200%$1,774$725$1,049$125,507
2706.875%5.200%$1,774$719$1,055$124,453
2716.875%5.200%$1,774$713$1,061$123,392
2726.875%5.200%$1,774$707$1,067$122,325
2736.875%5.200%$1,774$701$1,073$121,252
2746.875%5.200%$1,774$695$1,079$120,173
2756.875%5.200%$1,774$688$1,085$119,088
2766.875%5.200%$1,774$682$1,091$117,997
Year 23  $21,285$8,590$12,695 
2776.875%5.200%$1,774$676$1,098$116,899
2786.875%5.200%$1,774$670$1,104$115,795
2796.875%5.200%$1,774$663$1,110$114,685
2806.875%5.200%$1,774$657$1,117$113,568
2816.875%5.200%$1,774$651$1,123$112,445
2826.875%5.200%$1,774$644$1,129$111,316
2836.875%5.200%$1,774$638$1,136$110,180
2846.875%5.200%$1,774$631$1,142$109,037
2856.875%5.200%$1,774$625$1,149$107,888
2866.875%5.200%$1,774$618$1,156$106,732
2876.875%5.200%$1,774$611$1,162$105,570
2886.875%5.200%$1,774$605$1,169$104,401
Year 24  $21,285$7,689$13,595 
2896.875%5.200%$1,774$598$1,176$103,226
2906.875%5.200%$1,774$591$1,182$102,043
2916.875%5.200%$1,774$585$1,189$100,854
2926.875%5.200%$1,774$578$1,196$99,658
2936.875%5.200%$1,774$571$1,203$98,456
2946.875%5.200%$1,774$564$1,210$97,246
2956.875%5.200%$1,774$557$1,217$96,030
2966.875%5.200%$1,774$550$1,224$94,806
2976.875%5.200%$1,774$543$1,231$93,575
2986.875%5.200%$1,774$536$1,238$92,338
2996.875%5.200%$1,774$529$1,245$91,093
3006.875%5.200%$1,774$522$1,252$89,841
Year 25  $21,285$6,724$14,560 
3016.875%5.200%$1,774$515$1,259$88,582
3026.875%5.200%$1,774$508$1,266$87,316
3036.875%5.200%$1,774$500$1,273$86,043
3046.875%5.200%$1,774$493$1,281$84,762
3056.875%5.200%$1,774$486$1,288$83,474
3066.875%5.200%$1,774$478$1,295$82,178
3076.875%5.200%$1,774$471$1,303$80,875
3086.875%5.200%$1,774$463$1,310$79,565
3096.875%5.200%$1,774$456$1,318$78,247
3106.875%5.200%$1,774$448$1,325$76,922
3116.875%5.200%$1,774$441$1,333$75,589
3126.875%5.200%$1,774$433$1,341$74,248
Year 26  $21,285$5,691$15,593 
3136.875%5.200%$1,774$425$1,348$72,900
3146.875%5.200%$1,774$418$1,356$71,544
3156.875%5.200%$1,774$410$1,364$70,180
3166.875%5.200%$1,774$402$1,372$68,808
3176.875%5.200%$1,774$394$1,380$67,429
3186.875%5.200%$1,774$386$1,387$66,041
3196.875%5.200%$1,774$378$1,395$64,646
3206.875%5.200%$1,774$370$1,403$63,243
3216.875%5.200%$1,774$362$1,411$61,831
3226.875%5.200%$1,774$354$1,419$60,412
3236.875%5.200%$1,774$346$1,428$58,984
3246.875%5.200%$1,774$338$1,436$57,548
Year 27  $21,285$4,585$16,700 
3256.875%5.200%$1,774$330$1,444$56,104
3266.875%5.200%$1,774$321$1,452$54,652
3276.875%5.200%$1,774$313$1,461$53,192
3286.875%5.200%$1,774$305$1,469$51,723
3296.875%5.200%$1,774$296$1,477$50,245
3306.875%5.200%$1,774$288$1,486$48,759
3316.875%5.200%$1,774$279$1,494$47,265
3326.875%5.200%$1,774$271$1,503$45,762
3336.875%5.200%$1,774$262$1,512$44,251
3346.875%5.200%$1,774$254$1,520$42,730
3356.875%5.200%$1,774$245$1,529$41,202
3366.875%5.200%$1,774$236$1,538$39,664
Year 28  $21,285$3,400$17,885 
3376.875%5.200%$1,774$227$1,546$38,117
3386.875%5.200%$1,774$218$1,555$36,562
3396.875%5.200%$1,774$209$1,564$34,998
3406.875%5.200%$1,774$201$1,573$33,425
3416.875%5.200%$1,774$192$1,582$31,842
3426.875%5.200%$1,774$182$1,591$30,251
3436.875%5.200%$1,774$173$1,600$28,651
3446.875%5.200%$1,774$164$1,610$27,041
3456.875%5.200%$1,774$155$1,619$25,422
3466.875%5.200%$1,774$146$1,628$23,794
3476.875%5.200%$1,774$136$1,637$22,157
3486.875%5.200%$1,774$127$1,647$20,510
Year 29  $21,285$2,131$19,154 
3496.875%5.200%$1,774$118$1,656$18,854
3506.875%5.200%$1,774$108$1,666$17,188
3516.875%5.200%$1,774$98$1,675$15,513
3526.875%5.200%$1,774$89$1,685$13,828
3536.875%5.200%$1,774$79$1,694$12,134
3546.875%5.200%$1,774$70$1,704$10,429
3556.875%5.200%$1,774$60$1,714$8,716
3566.875%5.200%$1,774$50$1,724$6,992
3576.875%5.200%$1,774$40$1,734$5,258
3586.875%5.200%$1,774$30$1,744$3,515
3596.875%5.200%$1,774$20$1,754$1,761
3606.875%5.200%$1,771$10$1,761$0
Year 30  $21,282$772$20,510 
Grand
Total
    $638,533 $368,533 $270,000 

Mortgage Calculator - Help

Amortization Schedule
The amortization schedule show you how monthly principal and interest payment and principal balances change over the life of your loan.
Floor Rate
Floor rate is the minimum interest rate for an adjustable rate mortgage (ARM).
Index Rate
Rate Adjustment on ARMs are based on the index rate, the margin, the adjustment schedule, interest rate caps, and floor rate specified in your loan documents. Index rates change over time. They should be published and widely available. Common indexes used for setting mortgage rates have include the Prime Rate, Libor (London Interbank Offer Rate) and U.S. Treasury Rates.
Interest
The portion of your mortgage payment that is due to the interest rate being applied to the principal balance. The Total Interest for a mortgage is the sum of all interest paid over the life of a loan.
Interest Rate Adjustments
The interest rate changes on an adjustable rate mortage (ARM) during adjustment periods specified in your loan documents. Your interest rate may have a fixed period where it does not change followed by adjustements on a regularly scheduled basis. For example, the interest rate on a mortgage could be fixed for 2 years followed by adjustments every 6 months.
Interest Rate Caps
Limits how much your interest rate can be increased during each adjustment period for an ARM. The cap for the first adjustment period may be different than the cap on subsequent adjustments. There also may be a maximim overall cap on interest rate increases during the life of your loan.
Interest Rate Scenarios
To decide if an adjustable rate mortgage is right for you, you should how changes in interest rates will effect the mortgage. The adjustable rate mortgage calculator shows you how your payment changes in the best case where rates are set at the minimum for your mortgage, the worst case where rates are set at the maximum for your mortgage, and the stable case where rates remain constant for your mortgage.
Loan Amount
The initial principal balance or your mortgage at closing.
Margin
When an ARM adjusts the margin is added to the index rate to help determine your interest rate. Interest rate caps and the floor rate for your mortgage may limit how much your actual interest rate changes. The margin typically is fixed for the life of the loan. It should be clearly specified in your loan documents.
Payment Shock
Occurs when the required minimum payment for a mortgage increases significantly. This can occur on adjustable rate mortgage when interest rates rise sharply, on interest-only mortgages when the interest-only period ends, and on balloon mortgages when the balloon payment is due.
Principal
The portion of your mortgage payment that is used to pay down the current balance of your mortgage. The principal balance represents how much you owe on the mortgage.
Start Rate
The initial interest rate on an Adjustable Rate Mortgage.
Term
The amortization term is one of the key factors that determine your required mortgage payment. Your required mortgage payment for fully amortizing mortgages is the amount that would result in the mortgage being closest to being paid off by the end of the amortization term. Longer amortization terms result in lower required mortgage payments for fully amortizating mortgages, all other things being equal.