Which is better: Fixed or adjustable-rate mortgage?

It is a difficult decision to decide between a fixed and an adjustable-rate mortgage. Factors such as loan duration, the index used by the lender, the number and timing of rate adjustments, and your assumption about the increase/decrease of future interest rates all have an impact. Use this calculator to help compare the total cost of each alternative.
Mortgage Alternatives and Assumptions
Loan amount ($) 
Fixed-Rate LoanAdjustable-Rate Loan
(Initial) annual interest rate
Number of years
Index Rate Detail
Current index rate (%)help
Lenders margin added to index rate (%)help
Index rate adjustment (%)help
Number of months between index rate adjustments 
What will rates be doing over the life of the loan: stay same, increase or decrease? 
Assumed maximum annual rate adjustment (%) 
Adjustable Rate Detail
Absolute minimum rate over term of loan (%) 
Absolute maximum rate over term of loan (%) 
Number of months before first rate adjustments 
Number of months between rate adjustments 
Comparison Assumptions
Comparison options/cost of moneyhelp
(%) 
Marginal tax bracket (%)help
Years to compare total costs: 
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