Calculateur de Prêt à Taux Variable — Formule

## Adjustable-Rate Mortgage (ARM)

An ARM starts with a lower fixed rate for an initial period, then adjusts periodically based on a market index plus a margin.

### Common ARM Structures

- **5/1 ARM**: Fixed for 5 years, adjusts annually
- **7/1 ARM**: Fixed for 7 years, adjusts annually
- **10/1 ARM**: Fixed for 10 years, adjusts annually

### Rate Caps

ARMs have caps limiting rate changes:
- **Initial cap**: Maximum first adjustment (typically 2%)
- **Periodic cap**: Maximum annual adjustment (typically 2%)
- **Lifetime cap**: Maximum over loan life (typically 5-6%)

### When an ARM Makes Sense

- You plan to sell or refinance before the fixed period ends
- You want to maximize cash flow in the early years
- You believe rates will stay stable or decrease