What happens when
the fixed period ends?

An ARM (a loan whose rate is fixed for a few years, then can adjust) looks cheap at first — but your payment jumps when the fixed period ends. This tool shows exactly how big that jump is, and whether your DSCR (whether the property's rent can cover the loan payment; 1.00 = rent exactly covers it; higher is stronger) still holds up.

Enter your loan and pick a program. See the payment at first reset, every subsequent adjustment, and the worst-case lifetime cap — caps applied exactly as written in the note.

If DSCR drops below 1.0 at reset, the property can no longer cover its own costs — a deal-breaker for most investors and underwriters. A prepayment penalty (a fee some loans charge if you refinance early) may also apply if you try to exit before the fixed period ends.

SOFR is the index your rate floats with after the fixed period. Each row shows a different SOFR future — from falling rates (Bullish) to a spike (Crisis). "Deal breaks" means DSCR (rent ÷ full payment including taxes + insurance) drops below 1.0 — the property can no longer cover its own costs. Caps are enforced exactly as in your loan note.

Shows the Bearish scenario (SOFR held at 4.70%). Each reset the rate moves by at most the periodic cap — it cannot jump all at once. "Cap binding" tells you which cap is holding the rate back.

Fully-indexed rate = current SOFR + margin, bounded by the initial cap at first reset, periodic cap each subsequent reset, and lifetime cap = start rate + life cap. P&I re-amortizes on the schedule's actual balance at every reset — and at IO expiry, if the loan has an IO period. Even the CRISIS scenario (SOFR 7.00%) stabilizes below the lifetime cap on this margin — the structural ceiling shown above is a separate, more conservative reference point.

Every scenario above is a sustained 30-day SOFR level (2.70%–7.00%). Treasury-indexed ARMs reset off a different curve — the 5yr Treasury was 5.03% and the 10yr Treasury 5.18% as of 2026-09-24 — and this tool does not model those paths. If your note is Treasury-indexed, ask us to run it by hand rather than reading these numbers as yours.

Reset cadence (fixed 5 yrs, then every 6 mo) follows the ARM Type selected above. IO period defers principal — the payment jumps when it ends, even before any rate reset.

At reset, the new loan amount is capped by BOTH LTV AND DSCR. If the max new loan can't retire your existing balance, you'll need to bring cash to close (the "proceeds gap"). This calculator shows if you can refi at maturity.

Verdict: You CAN refinance at maturity — max new loan ($333,967) exceeds your remaining balance ($312,767). Cash-out available: $21,200.

Total over 30 years: $741,695 paid, $401,695 interest, loan retired to $0.