The charts show the effect of an interest rate adjustment on an adjustable-rate mortgage. Before adjustment
After adjustment
Component
Cost
Component
Cost
(P) Principal
$200,000
(P) Principal
$187,000
(R) Monthly interest rate
4%
(R) Monthly interest rate
5%
(n) Total number of
monthly payments
remaining
360
(n) Total number of
monthly payments
remaining
336
(M) Monthly payment
$1,059.85
(M) Monthly payment
$1,162.56