7/1 ARM - Example

A 7/1 ARM generally refers to an adjustable rate mortgage with an interest rate that is fixed for 7 years and that adjusts annually after that.

In this example, we look at a 7/1 ARM for $240,000 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 11.875%. The index and margin are 5.2% and 1.675% respectively.

After reviewing this example enter your mortgage terms in the ARM Calculator or explore the other examples.

Adjustable Rate Calculator
If the index rate remains stable you would end up paying $327,586 in interest over the life of the loan.
 Stable
MonthInterest
Rate
Index
Rate
Payment Interest Principal Balance
16.875%5.200%$1,577$1,375$202$239,798
26.875%5.200%$1,577$1,374$203$239,596
36.875%5.200%$1,577$1,373$204$239,392
46.875%5.200%$1,577$1,372$205$239,187
56.875%5.200%$1,577$1,370$206$238,980
66.875%5.200%$1,577$1,369$207$238,773
76.875%5.200%$1,577$1,368$209$238,564
86.875%5.200%$1,577$1,367$210$238,354
96.875%5.200%$1,577$1,366$211$238,143
106.875%5.200%$1,577$1,364$212$237,931
116.875%5.200%$1,577$1,363$213$237,717
126.875%5.200%$1,577$1,362$215$237,503
Year 1  $18,920$16,422$2,497 
136.875%5.200%$1,577$1,361$216$237,287
146.875%5.200%$1,577$1,359$217$237,070
156.875%5.200%$1,577$1,358$218$236,851
166.875%5.200%$1,577$1,357$220$236,632
176.875%5.200%$1,577$1,356$221$236,411
186.875%5.200%$1,577$1,354$222$236,188
196.875%5.200%$1,577$1,353$223$235,965
206.875%5.200%$1,577$1,352$225$235,740
216.875%5.200%$1,577$1,351$226$235,514
226.875%5.200%$1,577$1,349$227$235,287
236.875%5.200%$1,577$1,348$229$235,058
246.875%5.200%$1,577$1,347$230$234,828
Year 2  $18,920$16,245$2,674 
256.875%5.200%$1,577$1,345$231$234,597
266.875%5.200%$1,577$1,344$233$234,364
276.875%5.200%$1,577$1,343$234$234,130
286.875%5.200%$1,577$1,341$235$233,895
296.875%5.200%$1,577$1,340$237$233,659
306.875%5.200%$1,577$1,339$238$233,421
316.875%5.200%$1,577$1,337$239$233,181
326.875%5.200%$1,577$1,336$241$232,941
336.875%5.200%$1,577$1,335$242$232,699
346.875%5.200%$1,577$1,333$243$232,455
356.875%5.200%$1,577$1,332$245$232,210
366.875%5.200%$1,577$1,330$246$231,964
Year 3  $18,920$16,055$2,864 
376.875%5.200%$1,577$1,329$248$231,716
386.875%5.200%$1,577$1,328$249$231,467
396.875%5.200%$1,577$1,326$251$231,217
406.875%5.200%$1,577$1,325$252$230,965
416.875%5.200%$1,577$1,323$253$230,711
426.875%5.200%$1,577$1,322$255$230,456
436.875%5.200%$1,577$1,320$256$230,200
446.875%5.200%$1,577$1,319$258$229,942
456.875%5.200%$1,577$1,317$259$229,683
466.875%5.200%$1,577$1,316$261$229,422
476.875%5.200%$1,577$1,314$262$229,160
486.875%5.200%$1,577$1,313$264$228,896
Year 4  $18,920$15,852$3,068 
496.875%5.200%$1,577$1,311$265$228,631
506.875%5.200%$1,577$1,310$267$228,364
516.875%5.200%$1,577$1,308$268$228,096
526.875%5.200%$1,577$1,307$270$227,826
536.875%5.200%$1,577$1,305$271$227,555
546.875%5.200%$1,577$1,304$273$227,282
556.875%5.200%$1,577$1,302$274$227,008
566.875%5.200%$1,577$1,301$276$226,731
576.875%5.200%$1,577$1,299$278$226,454
586.875%5.200%$1,577$1,297$279$226,175
596.875%5.200%$1,577$1,296$281$225,894
606.875%5.200%$1,577$1,294$282$225,611
Year 5  $18,920$15,634$3,285 
616.875%5.200%$1,577$1,293$284$225,327
626.875%5.200%$1,577$1,291$286$225,042
636.875%5.200%$1,577$1,289$287$224,754
646.875%5.200%$1,577$1,288$289$224,465
656.875%5.200%$1,577$1,286$291$224,175
666.875%5.200%$1,577$1,284$292$223,882
676.875%5.200%$1,577$1,283$294$223,588
686.875%5.200%$1,577$1,281$296$223,293
696.875%5.200%$1,577$1,279$297$222,995
706.875%5.200%$1,577$1,278$299$222,696
716.875%5.200%$1,577$1,276$301$222,396
726.875%5.200%$1,577$1,274$302$222,093
Year 6  $18,920$15,401$3,518 
736.875%5.200%$1,577$1,272$304$221,789
746.875%5.200%$1,577$1,271$306$221,483
756.875%5.200%$1,577$1,269$308$221,175
766.875%5.200%$1,577$1,267$309$220,866
776.875%5.200%$1,577$1,265$311$220,554
786.875%5.200%$1,577$1,264$313$220,241
796.875%5.200%$1,577$1,262$315$219,927
806.875%5.200%$1,577$1,260$317$219,610
816.875%5.200%$1,577$1,258$318$219,291
826.875%5.200%$1,577$1,256$320$218,971
836.875%5.200%$1,577$1,255$322$218,649
846.875%5.200%$1,577$1,253$324$218,325
Year 7  $18,920$15,152$3,768 
856.875%5.200%$1,577$1,251$326$217,999
866.875%5.200%$1,577$1,249$328$217,672
876.875%5.200%$1,577$1,247$330$217,342
886.875%5.200%$1,577$1,245$331$217,011
896.875%5.200%$1,577$1,243$333$216,677
906.875%5.200%$1,577$1,241$335$216,342
916.875%5.200%$1,577$1,239$337$216,005
926.875%5.200%$1,577$1,238$339$215,666
936.875%5.200%$1,577$1,236$341$215,325
946.875%5.200%$1,577$1,234$343$214,982
956.875%5.200%$1,577$1,232$345$214,637
966.875%5.200%$1,577$1,230$347$214,290
Year 8  $18,920$14,884$4,035 
976.875%5.200%$1,577$1,228$349$213,941
986.875%5.200%$1,577$1,226$351$213,590
996.875%5.200%$1,577$1,224$353$213,237
1006.875%5.200%$1,577$1,222$355$212,882
1016.875%5.200%$1,577$1,220$357$212,525
1026.875%5.200%$1,577$1,218$359$212,166
1036.875%5.200%$1,577$1,216$361$211,805
1046.875%5.200%$1,577$1,213$363$211,442
1056.875%5.200%$1,577$1,211$365$211,077
1066.875%5.200%$1,577$1,209$367$210,709
1076.875%5.200%$1,577$1,207$369$210,340
1086.875%5.200%$1,577$1,205$372$209,968
Year 9  $18,920$14,598$4,322 
1096.875%5.200%$1,577$1,203$374$209,594
1106.875%5.200%$1,577$1,201$376$209,219
1116.875%5.200%$1,577$1,199$378$208,841
1126.875%5.200%$1,577$1,196$380$208,461
1136.875%5.200%$1,577$1,194$382$208,078
1146.875%5.200%$1,577$1,192$385$207,694
1156.875%5.200%$1,577$1,190$387$207,307
1166.875%5.200%$1,577$1,188$389$206,918
1176.875%5.200%$1,577$1,185$391$206,527
1186.875%5.200%$1,577$1,183$393$206,133
1196.875%5.200%$1,577$1,181$396$205,738
1206.875%5.200%$1,577$1,179$398$205,340
Year 10  $18,920$14,291$4,628 
1216.875%5.200%$1,577$1,176$400$204,940
1226.875%5.200%$1,577$1,174$402$204,537
1236.875%5.200%$1,577$1,172$405$204,132
1246.875%5.200%$1,577$1,170$407$203,725
1256.875%5.200%$1,577$1,167$409$203,316
1266.875%5.200%$1,577$1,165$412$202,904
1276.875%5.200%$1,577$1,162$414$202,490
1286.875%5.200%$1,577$1,160$417$202,073
1296.875%5.200%$1,577$1,158$419$201,654
1306.875%5.200%$1,577$1,155$421$201,233
1316.875%5.200%$1,577$1,153$424$200,809
1326.875%5.200%$1,577$1,150$426$200,383
Year 11  $18,920$13,963$4,957 
1336.875%5.200%$1,577$1,148$429$199,955
1346.875%5.200%$1,577$1,146$431$199,524
1356.875%5.200%$1,577$1,143$434$199,090
1366.875%5.200%$1,577$1,141$436$198,654
1376.875%5.200%$1,577$1,138$439$198,216
1386.875%5.200%$1,577$1,136$441$197,774
1396.875%5.200%$1,577$1,133$444$197,331
1406.875%5.200%$1,577$1,131$446$196,885
1416.875%5.200%$1,577$1,128$449$196,436
1426.875%5.200%$1,577$1,125$451$195,985
1436.875%5.200%$1,577$1,123$454$195,531
1446.875%5.200%$1,577$1,120$456$195,075
Year 12  $18,920$13,611$5,308 
1456.875%5.200%$1,577$1,118$459$194,616
1466.875%5.200%$1,577$1,115$462$194,154
1476.875%5.200%$1,577$1,112$464$193,690
1486.875%5.200%$1,577$1,110$467$193,223
1496.875%5.200%$1,577$1,107$470$192,753
1506.875%5.200%$1,577$1,104$472$192,281
1516.875%5.200%$1,577$1,102$475$191,806
1526.875%5.200%$1,577$1,099$478$191,328
1536.875%5.200%$1,577$1,096$480$190,848
1546.875%5.200%$1,577$1,093$483$190,365
1556.875%5.200%$1,577$1,091$486$189,879
1566.875%5.200%$1,577$1,088$489$189,390
Year 13  $18,920$13,234$5,685 
1576.875%5.200%$1,577$1,085$492$188,898
1586.875%5.200%$1,577$1,082$494$188,404
1596.875%5.200%$1,577$1,079$497$187,907
1606.875%5.200%$1,577$1,077$500$187,406
1616.875%5.200%$1,577$1,074$503$186,903
1626.875%5.200%$1,577$1,071$506$186,398
1636.875%5.200%$1,577$1,068$509$185,889
1646.875%5.200%$1,577$1,065$512$185,377
1656.875%5.200%$1,577$1,062$515$184,863
1666.875%5.200%$1,577$1,059$518$184,345
1676.875%5.200%$1,577$1,056$520$183,825
1686.875%5.200%$1,577$1,053$523$183,301
Year 14  $18,920$12,831$6,088 
1696.875%5.200%$1,577$1,050$526$182,775
1706.875%5.200%$1,577$1,047$529$182,245
1716.875%5.200%$1,577$1,044$533$181,713
1726.875%5.200%$1,577$1,041$536$181,177
1736.875%5.200%$1,577$1,038$539$180,639
1746.875%5.200%$1,577$1,035$542$180,097
1756.875%5.200%$1,577$1,032$545$179,552
1766.875%5.200%$1,577$1,029$548$179,004
1776.875%5.200%$1,577$1,026$551$178,453
1786.875%5.200%$1,577$1,022$554$177,899
1796.875%5.200%$1,577$1,019$557$177,341
1806.875%5.200%$1,577$1,016$561$176,781
Year 15  $18,920$12,399$6,521 
1816.875%5.200%$1,577$1,013$564$176,217
1826.875%5.200%$1,577$1,010$567$175,650
1836.875%5.200%$1,577$1,006$570$175,080
1846.875%5.200%$1,577$1,003$574$174,506
1856.875%5.200%$1,577$1,000$577$173,929
1866.875%5.200%$1,577$996$580$173,349
1876.875%5.200%$1,577$993$583$172,765
1886.875%5.200%$1,577$990$587$172,179
1896.875%5.200%$1,577$986$590$171,588
1906.875%5.200%$1,577$983$594$170,995
1916.875%5.200%$1,577$980$597$170,398
1926.875%5.200%$1,577$976$600$169,798
Year 16  $18,920$11,936$6,983 
1936.875%5.200%$1,577$973$604$169,194
1946.875%5.200%$1,577$969$607$168,586
1956.875%5.200%$1,577$966$611$167,976
1966.875%5.200%$1,577$962$614$167,361
1976.875%5.200%$1,577$959$618$166,744
1986.875%5.200%$1,577$955$621$166,122
1996.875%5.200%$1,577$952$625$165,497
2006.875%5.200%$1,577$948$628$164,869
2016.875%5.200%$1,577$945$632$164,237
2026.875%5.200%$1,577$941$636$163,601
2036.875%5.200%$1,577$937$639$162,962
2046.875%5.200%$1,577$934$643$162,319
Year 17  $18,920$11,441$7,479 
2056.875%5.200%$1,577$930$647$161,672
2066.875%5.200%$1,577$926$650$161,022
2076.875%5.200%$1,577$923$654$160,368
2086.875%5.200%$1,577$919$658$159,710
2096.875%5.200%$1,577$915$662$159,048
2106.875%5.200%$1,577$911$665$158,383
2116.875%5.200%$1,577$907$669$157,713
2126.875%5.200%$1,577$904$673$157,040
2136.875%5.200%$1,577$900$677$156,363
2146.875%5.200%$1,577$896$681$155,683
2156.875%5.200%$1,577$892$685$154,998
2166.875%5.200%$1,577$888$689$154,309
Year 18  $18,920$10,910$8,009 
2176.875%5.200%$1,577$884$693$153,617
2186.875%5.200%$1,577$880$697$152,920
2196.875%5.200%$1,577$876$701$152,220
2206.875%5.200%$1,577$872$705$151,515
2216.875%5.200%$1,577$868$709$150,807
2226.875%5.200%$1,577$864$713$150,094
2236.875%5.200%$1,577$860$717$149,377
2246.875%5.200%$1,577$856$721$148,656
2256.875%5.200%$1,577$852$725$147,932
2266.875%5.200%$1,577$848$729$147,202
2276.875%5.200%$1,577$843$733$146,469
2286.875%5.200%$1,577$839$737$145,732
Year 19  $18,920$10,342$8,578 
2296.875%5.200%$1,577$835$742$144,990
2306.875%5.200%$1,577$831$746$144,244
2316.875%5.200%$1,577$826$750$143,494
2326.875%5.200%$1,577$822$755$142,739
2336.875%5.200%$1,577$818$759$141,980
2346.875%5.200%$1,577$813$763$141,217
2356.875%5.200%$1,577$809$768$140,450
2366.875%5.200%$1,577$805$772$139,678
2376.875%5.200%$1,577$800$776$138,901
2386.875%5.200%$1,577$796$781$138,120
2396.875%5.200%$1,577$791$785$137,335
2406.875%5.200%$1,577$787$790$136,545
Year 20  $18,920$9,733$9,186 
2416.875%5.200%$1,577$782$794$135,751
2426.875%5.200%$1,577$778$799$134,952
2436.875%5.200%$1,577$773$803$134,149
2446.875%5.200%$1,577$769$808$133,340
2456.875%5.200%$1,577$764$813$132,528
2466.875%5.200%$1,577$759$817$131,710
2476.875%5.200%$1,577$755$822$130,888
2486.875%5.200%$1,577$750$827$130,062
2496.875%5.200%$1,577$745$831$129,230
2506.875%5.200%$1,577$740$836$128,394
2516.875%5.200%$1,577$736$841$127,553
2526.875%5.200%$1,577$731$846$126,707
Year 21  $18,920$9,081$9,838 
2536.875%5.200%$1,577$726$851$125,856
2546.875%5.200%$1,577$721$856$125,001
2556.875%5.200%$1,577$716$860$124,140
2566.875%5.200%$1,577$711$865$123,275
2576.875%5.200%$1,577$706$870$122,404
2586.875%5.200%$1,577$701$875$121,529
2596.875%5.200%$1,577$696$880$120,649
2606.875%5.200%$1,577$691$885$119,763
2616.875%5.200%$1,577$686$890$118,873
2626.875%5.200%$1,577$681$896$117,977
2636.875%5.200%$1,577$676$901$117,077
2646.875%5.200%$1,577$671$906$116,171
Year 22  $18,920$8,383$10,536 
2656.875%5.200%$1,577$666$911$115,260
2666.875%5.200%$1,577$660$916$114,343
2676.875%5.200%$1,577$655$922$113,422
2686.875%5.200%$1,577$650$927$112,495
2696.875%5.200%$1,577$644$932$111,563
2706.875%5.200%$1,577$639$937$110,625
2716.875%5.200%$1,577$634$943$109,682
2726.875%5.200%$1,577$628$948$108,734
2736.875%5.200%$1,577$623$954$107,781
2746.875%5.200%$1,577$617$959$106,821
2756.875%5.200%$1,577$612$965$105,857
2766.875%5.200%$1,577$606$970$104,887
Year 23  $18,920$7,636$11,284 
2776.875%5.200%$1,577$601$976$103,911
2786.875%5.200%$1,577$595$981$102,930
2796.875%5.200%$1,577$590$987$101,943
2806.875%5.200%$1,577$584$993$100,950
2816.875%5.200%$1,577$578$998$99,952
2826.875%5.200%$1,577$573$1,004$98,948
2836.875%5.200%$1,577$567$1,010$97,938
2846.875%5.200%$1,577$561$1,016$96,923
2856.875%5.200%$1,577$555$1,021$95,901
2866.875%5.200%$1,577$549$1,027$94,874
2876.875%5.200%$1,577$544$1,033$93,841
2886.875%5.200%$1,577$538$1,039$92,802
Year 24  $18,920$6,835$12,085 
2896.875%5.200%$1,577$532$1,045$91,757
2906.875%5.200%$1,577$526$1,051$90,706
2916.875%5.200%$1,577$520$1,057$89,649
2926.875%5.200%$1,577$514$1,063$88,586
2936.875%5.200%$1,577$508$1,069$87,517
2946.875%5.200%$1,577$501$1,075$86,442
2956.875%5.200%$1,577$495$1,081$85,360
2966.875%5.200%$1,577$489$1,088$84,273
2976.875%5.200%$1,577$483$1,094$83,179
2986.875%5.200%$1,577$477$1,100$82,079
2996.875%5.200%$1,577$470$1,106$80,972
3006.875%5.200%$1,577$464$1,113$79,860
Year 25  $18,920$5,977$12,942 
3016.875%5.200%$1,577$458$1,119$78,741
3026.875%5.200%$1,577$451$1,126$77,615
3036.875%5.200%$1,577$445$1,132$76,483
3046.875%5.200%$1,577$438$1,138$75,345
3056.875%5.200%$1,577$432$1,145$74,200
3066.875%5.200%$1,577$425$1,152$73,048
3076.875%5.200%$1,577$419$1,158$71,890
3086.875%5.200%$1,577$412$1,165$70,725
3096.875%5.200%$1,577$405$1,171$69,554
3106.875%5.200%$1,577$398$1,178$68,376
3116.875%5.200%$1,577$392$1,185$67,191
3126.875%5.200%$1,577$385$1,192$65,999
Year 26  $18,920$5,059$13,861 
3136.875%5.200%$1,577$378$1,199$64,801
3146.875%5.200%$1,577$371$1,205$63,595
3156.875%5.200%$1,577$364$1,212$62,383
3166.875%5.200%$1,577$357$1,219$61,164
3176.875%5.200%$1,577$350$1,226$59,938
3186.875%5.200%$1,577$343$1,233$58,704
3196.875%5.200%$1,577$336$1,240$57,464
3206.875%5.200%$1,577$329$1,247$56,217
3216.875%5.200%$1,577$322$1,255$54,962
3226.875%5.200%$1,577$315$1,262$53,700
3236.875%5.200%$1,577$308$1,269$52,431
3246.875%5.200%$1,577$300$1,276$51,155
Year 27  $18,920$4,075$14,844 
3256.875%5.200%$1,577$293$1,284$49,872
3266.875%5.200%$1,577$286$1,291$48,581
3276.875%5.200%$1,577$278$1,298$47,282
3286.875%5.200%$1,577$271$1,306$45,977
3296.875%5.200%$1,577$263$1,313$44,663
3306.875%5.200%$1,577$256$1,321$43,343
3316.875%5.200%$1,577$248$1,328$42,014
3326.875%5.200%$1,577$241$1,336$40,678
3336.875%5.200%$1,577$233$1,344$39,335
3346.875%5.200%$1,577$225$1,351$37,984
3356.875%5.200%$1,577$218$1,359$36,625
3366.875%5.200%$1,577$210$1,367$35,258
Year 28  $18,920$3,022$15,897 
3376.875%5.200%$1,577$202$1,375$33,883
3386.875%5.200%$1,577$194$1,383$32,501
3396.875%5.200%$1,577$186$1,390$31,110
3406.875%5.200%$1,577$178$1,398$29,712
3416.875%5.200%$1,577$170$1,406$28,305
3426.875%5.200%$1,577$162$1,414$26,891
3436.875%5.200%$1,577$154$1,423$25,468
3446.875%5.200%$1,577$146$1,431$24,038
3456.875%5.200%$1,577$138$1,439$22,599
3466.875%5.200%$1,577$129$1,447$21,152
3476.875%5.200%$1,577$121$1,455$19,696
3486.875%5.200%$1,577$113$1,464$18,232
Year 29  $18,920$1,894$17,025 
3496.875%5.200%$1,577$104$1,472$16,760
3506.875%5.200%$1,577$96$1,481$15,280
3516.875%5.200%$1,577$88$1,489$13,790
3526.875%5.200%$1,577$79$1,498$12,293
3536.875%5.200%$1,577$70$1,506$10,787
3546.875%5.200%$1,577$62$1,515$9,272
3556.875%5.200%$1,577$53$1,524$7,748
3566.875%5.200%$1,577$44$1,532$6,216
3576.875%5.200%$1,577$36$1,541$4,675
3586.875%5.200%$1,577$27$1,550$3,125
3596.875%5.200%$1,577$18$1,559$1,566
3606.875%5.200%$1,575$9$1,566$0
Year 30  $18,918$686$18,232 
Grand
Total
    $567,586 $327,586 $240,000 

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.