Home buying starts here.
Adjustable-Rate Mortgages
You can save more money in the early stages of your term.
Change can be a good thing.
Adjustable Rate Mortgages (ARMs) can offer you a reduced interest rate and monthly payment early on in your loan term. The catch? The initial rate is only fixed for a certain period of time, after which the rate – and your monthly payment – can move up or down depending on market conditions. Scary, right?
Not necessarily. If you don’t plan on living in one place for very long, ARMs are a cheaper alternative to fixed rates. Also, with a reduced monthly payment, you can use that extra money to put into the home, pay down other expenses or even earn more by throwing it into a higher-yielding investment. Also, if you’ve had some credit issues in the recent past that keep you from qualifying for a fixed rate mortgage, an ARM could be just the right alternative to missing the boat altogether in the current low interest rate environment!
- Fixed rates available for the initial 3, 5, 7, or 10 years of the mortgage term (amortized up to 30 years)
- The amount your rate can increase annually and over the life of the mortgage is capped (so it can’t go up indefinitely)
- Borrow up to $766,550 (or the conforming loan limit for the county where property is located)
- Financing available for primary residences or second homes
- For purchases and no cash-out refinances, financing available up to 95% of sales price/appraised value on primary residences.
- For cash-out refinances, financing available up to 80% of appraised value (for home improvement/consolidation loans in excess of 80% loan-to-value, check out our equity loan options!)
- Terms available for 10, 15, 20 and 30-years
- For refinances, closing costs can be rolled into mortgage to minimize out-of-pocket expenses
- Average application processing time is 30-45 days
- Financing available in all states except Texas and Puerto Rico
- No pre-payment penalties
- Reduced Private Mortgage Insurance (PMI ) premiums (for mortgages in excess of 80% Loan-to-Value)
- Simple online application process
Talk to us. Contact our mortgage specialists at mortgage@ardentcu.org.