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Adjustable Rate Mortgages

Adjustable Rate Mortgages

Woman smiling and welcoming you into her new home.
 

Adjustable Rate Mortgages (ARM) typically have lower initial interest rates and payments than fixed-rate mortgages.

 

Benefits of a Adjustable Rate Mortgage

  • Interest rate is generally lower than the market rate on a comparable fixed-rate mortgage and rises or possibly lowers over time
  • Typically cheaper than a fixed-rate mortgage at least in the first 5-7 years
  • Good for short-term homeowners
  • Can be used for home purchases or refinancing

 

How it Works

ARM products contain two numbers:

  • The first refers to the term of the initial interest rate
  • The second is the number of years between interest rate changes after the initial rate term
  • The interest rate and monthly payment are fixed for an initial time period such as one year, three years, five years, or seven years. After the initial fixed period, the interest rate can change every year. 
  • For example, a 5/1 ARM has an interest rate fixed for a 5 year period. The rate can adjust up or down by a specific interest rate amount each year after that.
  • ARMs have a lifetime cap on how high or low the interest rate can go during the term of your loan.

 

Everyone’s home-buying situation is unique

That’s why we provide a variety of ARM options to give you more choices. We'll work with you to find your best fit.

 

Rates as low as:

Examples rate for $200,000  mortgage loan with a 30-year term.1

Loan Type Interest Rates as Low As1 Discount Points APR as low as First Cap Subsequent Cap Lifetime Cap
5/1 Conforming ARM 4.688% 1.00 5.232% 2.00% 2.00%

5.00%

Review other mortgage options.

 

Home Ownership Within Reach!

Becoming a home owner doesn’t have to be a dream. At UVA Community Credit Union Mortgage we strive to ensure the financial wellness of our members. Our team of Mortgage Loan Originators* can make becoming a homeowner possible with services that support you every step of the way.

Get Started Today!

Apply Now
 
Request an Appointment
Get a Rate Quote

 

Helpful Resources

 

1Adjustable Rate Mortgages are variable, and your Annual Percentage Rate (APR) may increase after the original fixed interest-rate period of five years. The First Adjusted Payments displayed is based on the current Constant Maturity Treasury (1-year CMT) index, plus the margin (fully indexed rate) as of the stated effective date rounded up to the nearest 1/8th of one percent.

APR=Annual Percentage Rate. Rate is effective 04/27/2023 and is subject to change. Interest rate displayed is the "as low as" rate for purchase loans and refinances. Interest rate includes the purchasing of one discount point to lower the loan's interest rate and monthly payment. One point equal 1% of the loan amount paid at closing.

All loans subject to credit approval. Interest rates are based on creditworthiness, loan-to-value (LTV), occupancy and loan purpose, so your rate and terms may differ. There is a flat loan origination charge of $695 and an underwriting fee of $595. Many of our ARM programs carry discount points, which may impact your rate.

Payment Example for $200,000, 30-year mortgage loan at 80% Loan to Value: 4.688% interest rate, APR of 5.232%, Principle and Interest amount is $1,035.83 plus one discount point equaling $2,000 would be charged on closing.  

Other restrictions may apply. UVA Community Credit Union membership eligibility may be required. A minimum ongoing balance of $5 in a Share Savings Account and a one-time $5 membership fee may be required if not currently a UVA Community Credit Union member. Contact a Mortgage Loan Originator for more details about our 5/1 and other ARM options.

*Mortgage services provided by Member Options, LLC (licensed by the Virginia State Corporation Commission, VA License #MC-5520) NMLS #194038 (nmlsconsumeraccess.org) a wholly owned subsidiary of UVA Community Credit Union.

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