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Adjustable Rate Mortgage(ARM) |
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Adjustable Rate Mortgages do not have a fixed interest rate for the life of the loan. The rate adjusts periodically based on an index that changes with the market.
With an ARM, the subject property may be:
- One, two, three or four units (owner occupied only)
- A second home (single family units and Condominiums only)**
- Condominium
- Planned Unit Development
- Townhouse
Benefits for ARMs include:
- Low initial interest rate
- Lower initial payments
- Increased purchasing power
- Payment term options available
- Rate is lock available at the date of application or the rate three business days prior to closing, which ever is lower. Max rate lock period is 6 months from the date of application.
- Applicants can qualify for higher loan amounts with lower interest rates than comparable fixed-rate loans
New rates are calculated as follows: Index + Margin rounded to the nearest 1/8th |
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| Features |
3/1 ARM |
3/3 ARM |
5/1 ARM |
7/1 ARM |
10/1 ARM |
No Closing Cost |
| Max Term |
30 years |
30 years |
30 years |
30 years |
30 years |
' |
| Fixed Term |
3 years |
3 years |
5 years |
7 years |
10 years |
' |
| Adjustment Schedule |
Annually |
Every 3 years |
Annually |
Annually |
Annually |
Annually |
| First Adjustment Rate Cap |
2% |
2% |
2% |
5% |
5% |
2% |
| Subsequent Adjustment Rate Caps |
2% |
2% |
2% |
2% |
2% |
2% |
| Lifetime Cap |
6% over intro rate |
6% over intro rate |
6% over intro rate |
6% over intro rate |
6% over intro rate |
6% over intro rate |
| Margin |
2.5% |
2.5% |
2.5% |
2.5% |
2.5% |
2.5% |
| Index |
1 Year Treasury |
3 Year Treasury |
1 Year Treasury |
1 Year Treasury |
1 Year Treasury |
1 Year Treasury |
| Borrow Amount | If qualified, members can borrow up to:
One-Unit Properties: To $417,000
Two-Unit Properties: To $533,850
Three-Unit Properties: To $645,300
Four-Unit Properties: To $801,950
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* Mortgage loans are available in all states except Texas
** the property that will secure the loan must become your principal residence at some future time. | |
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