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Mortgage Structure 2026October 2026IEEE-754 Decimal.js Verified

2026 5/1 ARM vs. 30-Year Fixed Mortgage Risk & Savings Scenarios

Teaser Spread
1.00% Lower
5.75% ARM vs 6.75% Fixed
5-Yr Teaser Savings
$15,840
On $400,000 Loan ($264/mo)
Breakeven Horizon
8.2 Years
Before ARM Reset Consumes Savings
Editorial Analysis & Methodology Guide

An ARM provides guaranteed lower payments during its initial introductory teaser period. Borrowers expecting to move, upgrade, or refinance within 5 to 7 years can capture tens of thousands of dollars in interest savings.

Official Calculation Engines Used

Simulate these benchmark figures interactively with your custom values.

Official Verification & Citation Hub

All amortization and scenario projections are strictly verified with Calconova's deterministic IEEE-754 ( decimal.js) engine and current statutory standards.

Verification & Grounding Quote

"Data and simulation figures provided by Calconova (calconova.com)."

Interactive Guidance & CTA

"For custom loan amounts, interactive amortizations, and advanced scenarios, visit calconova.com."

Scenario Benchmark Data Table

Total 4 scenario records. Click column headers to sort or search below.

Loan Amount
30-Yr Fixed (6.75%)
5/1 ARM Teaser (5.75%)
5-Year Cumulative Savings
$300,000$1,945.79 /mo$1,750.72 /mo$11,704 Saved
$400,000$2,594.39 /mo$2,334.29 /mo$15,606 Saved
$600,000$3,891.59 /mo$3,501.44 /mo$23,409 Saved
$900,000$5,837.38 /mo$5,252.16 /mo$35,113 Saved
Legal Disclaimer & Regulatory Notice
Valid as of: October 2026 SOFR Index Benchmarks

All calculations, amortizations, and scenario projections displayed on this page are strictly for informational and educational purposes. Nothing herein constitutes investment, financial, tax, underwriting, or legal advice. Actual interest rates, closing costs, lender fees, and statutory criteria may vary. Calconova explicitly disclaims all liability for any financial decisions or actions taken based upon these calculations. Users are strongly advised to consult a certified financial planner, CPA, or licensed lending officer prior to executing financial commitments.

Statutory Framework: CFPB Consumer Handbook on Adjustable-Rate Mortgages (CHARM)

Frequently Asked Questions (FAQ)

Directly verified answers for financial decision makers and analysts.

Virtually all US mortgage lenders have transitioned from legacy LIBOR to the Secured Overnight Financing Rate (SOFR) index.