This calculator is designed to show the amount you could save on your mortgage based on today's best national rates*. It is intended to be a quick reference tool only, showing approximate savings. Your interest rate may vary based on your FHA loan and state requirements. A loan officer will provide the actual rate, points and APR when you complete an official loan application.

Enter your information as accurately as possible to ensure the best results.

Variable rates can be very rewarding in the right situations, and are typically quite a bit lower than fixed rates. Unfortunately, many people don't consider variable rates because they don't understand how they work, which usually means that they end up paying a lot of extra money on a fixed rate.

Did you know that a FHA variable rate is only allowed to go up by a maximum of 1% per year, and can never go 5% over your original rate? In addition, a variable rate only changes once a year on the loan's anniversary. With this in mind, we offer the following advice.

If you plan on living in your house five years or less a variable rate is probably a good choice at this time. The reason? If you took the absolute worst case scenario, your average rate over 5 years would still equal the best current fixed rate that you could get today. Since the worst case scenario is very unlikely, you could save thousands more on your mortgage!

If you don't like risk and plan on living in your house over 5-10 years, then you should probably stay with a fixed rate and watch the rates over time, refinancing whenever the current rate drops more than a half a point below your existing rate.