Adjustable Rate Mortgages (ARMs): Principal & Interest 1/1, 3/1, 5/1, 7/1, and 10/1 ARMs
Adjustable Rate Mortgages (ARMs) provide an initial interest rate that is lower than the average fixed rate mortgage. The lower rate provides you with an initial lower payment, which translates into increased purchasing power. CFCU ARM's are available in 15-, and 30-year terms and provide an initial fixed rate period of 1, 3, 5, 7, or 10 years before the rate adjusts. The interest rate usually adjusts annually thereafter.
CFCU Exclusive ARM Programs
As a member of CFCU, you have access to our exclusive 3/3 and 5/5 ARMs. Instead of the payment adjusting annually after the initial fixed rate period, we provide our members with the added stability of longer adjustment periods of 3 and 5 years. This means your loan is subject to less frequent rate changes when compared to a typical ARM.
Choose a mortgage that gives you the freedom of choice. Whether you're moving up to your next home or simply managing your cash flow and interest expenses -- the choice is up to you.
3/3 ARM 15 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first 3 years, adjusts every 3 years thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust every 3 years
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
3/3 ARM 30 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first 3 years, adjusts every 3 years thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust every 3 years
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
5/5 ARM 15 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first 5 years, may adjust every 5 years thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust every 5 years
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
5/5 ARM 30 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first 5 years, may adjust every 5 years thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust every 5 years
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
1/1 LARM 15 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product
You do not plan on staying in the home for a long period | Advantages:Allows for higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
1/1 LARM 30 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product
You do not plan on staying in the home for a long period | Advantages:Allows for higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
10/1 LARM 30 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first 10 years, may adjust annually thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust annually
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
3/1 LARM 15 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first three years, adjusts annually thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust frequently
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
3/1 LARM 30 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first three years, adjusts annually thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust frequently
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
5/1 LARM 15 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first 5 years, may adjust annually thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust annually
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
5/1 LARM 30 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first 5 years, may adjust annually thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust annually
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
7/1 LARM 15 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first 7 years, may adjust annually thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust annually
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
7/1 LARM 30 Year
| Best Choice If:You want a loan with:
Lower initial monthly payments and rate
Payments that adjust up and down with market movements
Benefits of both a Fixed and ARM product | Advantages:Interest rate stays fixed for the first 7 years, may adjust annually thereafter
Allows for a higher loan amount qualification and enhanced buying power
No prepayment penalty
Automatic payment option available | Disadvantages:Interest rate and monthly payments may adjust annually
Riskier if you do not have the income to cover the potential changes in monthly payment
Interest rate can rise above the current fixed rates over time |
