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Mortgage Rate Shock

What if rates rise by 1%, 2%, or 3%?

Current monthly payment
$2,398
at 6%

If rates rise...

+1% (to 7.0%)+$263/mo
New payment: $2,661 · Annual increase: $3,156
+2% (to 8.0%)+$537/mo
New payment: $2,935 · Annual increase: $6,442
+3% (to 9.0%)+$820/mo
New payment: $3,218 · Annual increase: $9,843

Use this when shopping ARMs or planning for rate increases. A 2% rate rise on a $400k 30-year mortgage at 6% adds about $500/month. Canadian, UK, and Australian mortgages mostly reset to current market rates after 5 years; US 30-year fixed locks the rate for the full term, which is why fixed-rate makes more sense in the US.

About

Enter loan, rate, and term. Get the new payment under +1%, +2%, and +3% rate shocks, with the monthly and yearly increases. Useful for ARMs, HELOCs, and stress-testing your budget against rising rates.

How to use

  1. Enter loan and current rate.
  2. Read payment under each shock.

FAQ

Why does this matter for fixed-rate loans?+

It doesn't directly. US 30-year fixed locks the rate. The tool is most useful for ARMs (5/1, 7/1) facing reset, HELOCs that float, or planning a future refinance. Also useful for shoppers comparing affordability at different market rates.