Adjustable Rate Simulation
Interest Rate Adjustments

To enable "Interest Rate Adjustments" check the box marked "Include rate adjustments." This will allow the user to enter the exact day, month, and year each interest rate change will occur on the amortization schedule.

Month/Day/Year:
Allows the user to specify the exact day, month, and year of each interest rate change.

Interest Rate %:
Allows the user to enter the desired interest rate percentage.

Open, Close, Save as...:
These buttons allow the user to either open an existing file with the ".int" file extension that was created by Mortgage Loan Calculator Plus 2.0, close a file with the ".int" file extension currently open, or save the data entered to a file with the ".int" file extension.
Note: when a file is open the name of the currently open file will appear in the title of the window.

Add, Remove, Remove All:
These buttons allow the user to either add an interest rate percentage and the date of the interest rate change to the currently open file, remove a previously entered interest rate percentage and date, or remove all previously entered interest rate percentages and dates.

Adjustable Rate Simulation

To enable the "Adjustable rate simulation" options check the box marked "Run Simulation." This adjustable rate simulation will give the user a good idea of the effects rate adjustments will have on mortgage payments.

First Adjustable Rate Change:
Allows the user to enter the desired first interest rate percentage. This value can be set to zero, which will result in the first interest rate percentage being selected randomly.

Fixed Rate Period:
Gives the user the option of specifying how long the interest rate will remain the same before interest rate changes begin. This fixed rate period can be set by number of months or by number of years.

Rate Change Interval:
Allows the user to decide how often the interest rate will change. This interval can be in either months or years. Note: The default is set to a interest rate change each year. This option provides the best results.

Periodic Rate Cap:
Allows the user to set a limit on how much an interest rate will increase during a rate change period. For example, if the user enters a periodic rate cap of 2% and the interest rate during that period increases by 3%, the remaining 1% will carry over to the next interest rate change period and will be added to that interest rate.

Overall Rate Cap:
This option allows the user to set a limit on how high interest rates will go over the life of the loan.

Minimum Interest Rate:
This option allows the user to set a limit on how low interest rates can go over the life of the loan.

Interest Rates Will...:
The user can select an option that will cause interest rates to increase, decrease, or increase/decrease randomly over the life of the loan.

Random:
This box will become enabled when the user either chooses for interest rates to increase or decrease (NOT when increase/decrease randomly has been selected). If the user selects the increase option, checking this box will cause interest rates to increase more often than they decrease over the life of the loan. If the decrease option was selected, interest rates will decrease more often than they increase over the life of the loan.

Set Increase:
Checking this this option allows the user to set exactly by what percentage interest rates will increase at the specified rate change interval.

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