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You have a choice between a​ 30-year fixed rate loan at 3.5% and an adjustable rate...

You have a choice between a​ 30-year fixed rate loan at 3.5% and an adjustable rate mortgage​ (ARM) with a first year rate of 2%. Neglecting compounding and changes in​ principal, estimate your monthly savings with the ARM during the first year on a 250,000 loan. Suppose that the ARM rate rises to 10​% at the start of the third year. Approximately how much extra will you then be paying over what you would have paid if you had taken the fixed rate​ loan?
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