Yes, we really do refer to them as ARMs. But behind the odd name is a neat idea. With an adjustable-rate mortgage, you pay a lower rate for the first few years, which can make that house you really want more affordable.
After that, the rate gets adjusted periodically. ARMs are a good bet if you think overall interest rates might drop, your family's income might rise, or if you might move again in a few years.
For a limited time, fees will be waived up to 2% of the amount financed on our adjustable-rate mortgages. That includes, application, appraisal and recording fees, title services and more.
For a complete list of eligibility requirements, talk to a Power Financial Credit Union mortgage specialist by calling 800-548-5465.
*Lifetime cap of 6%, initial rate adjustment cap of 2% and subsequent periodic rate adjustment cap of 1%. If the loan is paid off earlier than 36 months (3 years) the lender’s credit will be added to the payoff. Floor rate is equal to initial rate. Adjustable Rate Mortgages are amortized over 30-year term. Primary residence only. Valid for purchase or refinance. Applicable on 3 yr./6 mo., 5 yr./6 mo., 7 yr./6 mo. and 10 yr./6 mo. Adjustable Rate Mortgages only.
**5/5 ARM- Rate is variable with a periodic cap of 2 percentage points every 5 years with a lifetime maximum cap of 5%. Other restrictions may apply. Payment example- For a 5/5 Adjustable Rate Mortgage of $350,000 at 30 years at 5.500%, you would make 60 fixed payments of $1,987.26 at 5.576% APR. After that, the fully indexed rate of 5.500% will apply to the remaining 300 payments and may vary every five years. Payment amount does not include taxes and insurance. Actual payment amount will be greater.