Adjustable-Rate Mortgages (ARMs)
Comparing Mortgages: Your Mortgage Checklist

• ARM Benefits and Risks
• ARM Features: Index, Margin, Adjustment Period
• ARM Discounts and Payment Shock
• ARM Interest-Rate Caps, Carryovers
• ARM Payment Caps, Negative Amortization, Prepayment, Conversion
• ARM Mortgage Checklist, Compare Mortgages
• ARM Mortgage Glossary

Adjustable-rate mortgages ARM checklist compare features monthly payment

To compare one adjustable-rate mortgage (ARM) with another or with a fixed-rate mortgage, you need to know about indexes, margins, discounts, caps, negative amortization, and convertibility. You need to consider the maximum amount your monthly payment could increase. Most important, you need to compare what might happen to your mortgage costs with your future ability to pay. Asking lenders to fill out this checklist is a good way to get the information you need to compare mortgages.

Print this mortgage checklist for your convenience, and ask your mortgage lender to help you complete it.

		Mortgage A	Mortgage B
Mortgage Amount
Basic Features for Comparision Fixed-rate annual percentage rate (the cost of your credit as a yearly rate, including both interest and other charges)
ARM annual percentage rate
	Adjustment period
	Index used and current rate
	Margin
	Initial payment without discount
	Initial payment with discount (if any)
	How long will discount last?
	Interest-rate caps: periodic
	Interest-rate caps: overall
	Payment caps
	Negative amortization
	Convertibility or prepayment privilege
	Initial fees and charges
Monthly Payment Amounts
What will my monthly payment be after 12 months if the index rate:
	stays the same
	goes up 2%
	goes down 2%
What will my monthly payment be after 3 years if the index rate:
	stays the same
	goes up 2% per year
	goes down 2% per year
Take into account any caps on your mortgage and remember that it may run 30 years.

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