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ARM

 

What is an Adjustable-Rate Mortgage?

Adjustable-Rate Mortgages (ARMs) begin with an introductory rate followed by an adjustment based on an index that can fluctuate with market conditions.

We offer a 5- or 7-year initial term in which your rate will remain the same. After this initial period, the rate adjusts based on a set interval. This adjustment is determined by market conditions. Get pre-qualified today or schedule an appointment with a mortgage expert to see if an ARM is a good fit for you!

 

 

Adjustable-Rate Mortgage Benefits

  • 5 years at 7.197% APR 1 or 7 years at 7.060% APR 1 for initial term options
  • Initial monthly payment lower than a traditional fixed-rate mortgage
  • Easy and secure online application, plus most of the loan process can be done from the comfort of your home

Get Pre-Qualified

 

 

Is an ARM right for you?

Let's check! 

  • Do you plan on moving before the end of the initial loan term?
  • Do you want a loan with lower monthly payments?
  • Are you just getting started in your career, but anticipate higher wages in the future?

If you said "YES," to any of these questions, chances are an ARM could be right for you!

Let's explore this option together!

Find My Mortgage Loan Officer

 

 

What do all those numbers mean? Let's break it down!

Example: A 5/6 ARM, SOFR index, with a 2.75% margin, 2/2/5 caps   

First number (5) represents the number of years the interest rate will remain the same initial term

Second number (6) represents how often the rate will change. In this example, the rate will adjust every 6 months after the initial term

Margin (2.75%) A margin is the percentage added to the current SOFR index number at the time of each adjustment

Caps (2/2/5)

  • First number (2) represents the maximum percentage your rate can change after the initial 5-year term
  • Second number (2) represents the maximum percentage of each adjustment after the mortgage adjusts the first time following the initial period of 5-years
  • Third number (5) represents the maximum percentage the rate can adjust over the lifetime of the loan

SOFR Index (Secured Overnight Financing Rate) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. The values are published by the Federal Reserve Bank of New York.

 

 
Locations & ATMs

Find an AACU branch or ATM, or locate thousands of surcharge-free ATMs or shared branch locations in the U.S. and Canada.

Talk to a Mortgage Expert

Schedule an appointment with a Mortgage Loan Officer and they'll help you find the best options to get you in your new home!

Loan Rates

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Explore Home Loan Options

Knowing what is available to you is a great first step. Check out our home loan options - and let's get you on your way to being home!

 

Disclosures

1 APR=Annual Percentage Rate is effective 07/17/2024 and includes origination fees based on product type. Rates are subject to change. A example of a 5/6 payment for $320,000 loan with a 5.75% rate and 7.197% APR, the first 60 payments are $1867.43 followed by 300 payments that could range from $1,372.00 to $2,846.00 based on a minimum rate of 2.75% and a maximum rate of 10.75%. A example of a 7/6 payment for $320,000 loan with a 6.00% rate and 7.060% APR, the first 84 payments are $1,918.56, followed by 276 payments that could range from $1,404.00 to $2,860.00, based on a minimum rate of 2.75% and a maximum rate of 11.00%. Examples assume a property value of $400,000 and a loan to value of 80%. Above payment examples don’t include taxes and insurance. Actual payments may be higher. Closing costs don’t include buy downs, escrows or subordination fees (if applicable). The values are published by the Federal Reserve Bank of New York. Membership requirements apply. Restrictions and requirements apply. Program subject to change. Equal Housing Lender.

Air Academy Federal Credit Union: NMLS# 454287