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5/6 · 7/6 · 10/6 ARM · SOFR + margin · caps

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.

Years 1–5
Fixed
5.13% locked
First reset
+2.0%
cap-limited
Years 6–30
Adjusts
SOFR + 2.75%
Monthly P&I — fixed period, the reset, then it floats
$1,851$2,236+20.8%Yr 1Yr 5 · resetYr 30
Model the reset ↓
Live ARM reset engine

First-reset payment shock: +20.8%

Below 8% shock = manageable. 8–20% = watch carefully. Above 20% = red. 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.

Loan & ARM terms
ARM Type
5/6 = fixed 5 yrs, adjusts every 6 months after. 7/6 = fixed 7 yrs. 10/6 = fixed 10 yrs.
Index
30-Day SOFRpriced
Every scenario below is a sustained 30-day SOFR level (2.59%–7.00%). Treasury-indexed ARMs reset off a different curve — the 5yr Treasury was 4.26% and the 10yr Treasury 4.47% as of 2026-06-17 — 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.
Deal inputs
Fixed payment
$1,851
at 5.125% — locked for 5 yrs
First reset (worst case)
$2,236
at 7.125% — initial cap applied
Lifetime cap (absolute max)
$2,870
at 10.125% — rate can never exceed this
5 rate scenarios — does the deal survive?
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.

SOFR / Treasury market snapshot & Vasicek calibration. Last verified June 17, 2026 — past its 30-day review cycle; treat as provisional.

Bullish
SOFR 2.59%
First reset 5.340%
P&I /mo $1,891
DSCR @ reset 1.14x
DSCR @ stable 1.14x
Base
SOFR 3.59%
First reset 6.340%
P&I /mo $2,081
DSCR @ reset 1.06x
DSCR @ stable 1.06x
Bearish
SOFR 4.59%
First reset 7.125%
P&I /mo $2,236
DSCR @ reset 1.00x
DSCR @ stable 0.99x
Deal breaks at this SOFR — DSCR drops below 1.0
Stress
SOFR 5.00%
First reset 7.125%
P&I /mo $2,236
DSCR @ reset 1.00x
DSCR @ stable 0.96x
Deal breaks at this SOFR — DSCR drops below 1.0
Crisis
SOFR 7.00%
First reset 7.125%
P&I /mo $2,236
DSCR @ reset 1.00x
DSCR @ stable 0.85x
Deal breaks at this SOFR — DSCR drops below 1.0
Reset schedule
Shows the Bearish scenario (SOFR +4.59%). 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.
EventRateP&I /moDetail
Fixed period5.125%$1,851Years 1–5
Reset 17.125%$2,236INITIAL CAP · Yr 6
Reset 27.340%$2,278NONE · Yr 6
Reset 37.340%$2,278NONE · Yr 7
Reset 47.340%$2,278NONE · Yr 7
Reset 57.340%$2,278NONE · Yr 8
Reset 67.340%$2,278NONE · Yr 8
Reset 77.340%$2,278NONE · Yr 9
Reset 87.340%$2,278NONE · Yr 9
Reset 97.340%$2,278NONE · Yr 10
Reset 107.340%$2,278NONE · Yr 10
Reset 117.340%$2,278NONE · Yr 11
Reset 127.340%$2,278NONE · Yr 11
Reset 137.340%$2,278NONE · Yr 12
Reset 147.340%$2,278NONE · Yr 12
Reset 157.340%$2,278NONE · Yr 13
Reset 167.340%$2,278NONE · Yr 13
Reset 177.340%$2,278NONE · Yr 14
Reset 187.340%$2,278NONE · Yr 14
Reset 197.340%$2,278NONE · Yr 15
Reset 207.340%$2,278NONE · Yr 15
Reset 217.340%$2,278NONE · Yr 16
Reset 227.340%$2,278NONE · Yr 16
Reset 237.340%$2,278NONE · Yr 17
Reset 247.340%$2,278NONE · Yr 17
Reset 257.340%$2,278NONE · Yr 18
Reset 267.340%$2,278NONE · Yr 18
Reset 277.340%$2,278NONE · Yr 19
Reset 287.340%$2,278NONE · Yr 19
Reset 297.340%$2,278NONE · Yr 20
Reset 307.340%$2,278NONE · Yr 20
Reset 317.340%$2,278NONE · Yr 21
Reset 327.340%$2,278NONE · Yr 21
Reset 337.340%$2,278NONE · Yr 22
Reset 347.340%$2,278NONE · Yr 22
Reset 357.340%$2,278NONE · Yr 23
Reset 367.340%$2,278NONE · Yr 23
Reset 377.340%$2,278NONE · Yr 24
Reset 387.340%$2,278NONE · Yr 24
Reset 397.340%$2,278NONE · Yr 25
Reset 407.340%$2,278NONE · Yr 25
Reset 417.340%$2,278NONE · Yr 26
Reset 427.340%$2,278NONE · Yr 26
Reset 437.340%$2,278NONE · Yr 27
Reset 447.340%$2,278NONE · Yr 27
Reset 457.340%$2,278NONE · Yr 28
Reset 467.340%$2,278NONE · Yr 28
Reset 477.340%$2,278NONE · Yr 29
Reset 487.340%$2,278NONE · Yr 29
Reset 497.340%$2,278NONE · Yr 30
Reset 507.340%$2,278NONE · Yr 30
Engine: 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. Preliminary estimate — not a commitment to lend. Submit a scenario review for exact underwriting.
Ready to lock a rate before the clock runs out?

Model the fixed-rate refinance before your ARM resets — no income docs, the rent does the qualifying.

Maturity Risk Analysis

Can you refinance at ARM 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.

Assumed, not appraised. With no value entered we back one out of your loan at 75% LTV at origination — $453,333. That makes the LTV cap below equal your original loan amount by construction, so only the DSCR leg can bind. Enter a real value to see whether LTV binds first.
Max new loan (LTV)
$340,000
75% of $453,333 (assumed value)
Max new loan (DSCR)
$333,967
DSCR binds
$333,967
Cash out available
+$21,200

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

Full amortization schedule

Every year, IO through payoff — Base scenario (SOFR 3.59%)

Rolled up by loan year from the same month-by-month schedule the tool prices every payment from — interest-only years, the amortizing years, and every reset in between, on one continuous balance.

YearPhaseRate rangePayment (end of yr)Balance (end of yr)
1Amortizing5.125%$1,851/mo$335,096
2Amortizing5.125%$1,851/mo$329,934
3Amortizing5.125%$1,851/mo$324,502
4Amortizing5.125%$1,851/mo$318,784
5Amortizing5.125%$1,851/mo$312,767
6Amortizing · reset6.340%$2,081/mo$307,477
7Amortizing6.340%$2,081/mo$301,841
8Amortizing6.340%$2,081/mo$295,837
9Amortizing6.340%$2,081/mo$289,441
10Amortizing6.340%$2,081/mo$282,628
11Amortizing6.340%$2,081/mo$275,371
12Amortizing6.340%$2,081/mo$267,639
13Amortizing6.340%$2,081/mo$259,403
14Amortizing6.340%$2,081/mo$250,629
15Amortizing6.340%$2,081/mo$241,282
16Amortizing6.340%$2,081/mo$231,326
17Amortizing6.340%$2,081/mo$220,719
18Amortizing6.340%$2,081/mo$209,420
19Amortizing6.340%$2,081/mo$197,384
20Amortizing6.340%$2,081/mo$184,561
21Amortizing6.340%$2,081/mo$170,902
22Amortizing6.340%$2,081/mo$156,351
23Amortizing6.340%$2,081/mo$140,851
24Amortizing6.340%$2,081/mo$124,339
25Amortizing6.340%$2,081/mo$106,748
26Amortizing6.340%$2,081/mo$88,010
27Amortizing6.340%$2,081/mo$68,048
28Amortizing6.340%$2,081/mo$46,784
29Amortizing6.340%$2,081/mo$24,131
30Amortizing6.340%$2,081/mo$0

Total over 30 years: $735,274 paid, $395,274 interest, loan retired to $0.