Adjustable Rate Mortgage (ARM)
Get into the house you want with a lower initial interest rate.
Langley's 5/1 ARM
Fixed 2.75%, 2.89% APR for the first 5 years*
A 5/1 ARM allows you to lock into a low fixed rate for the first five years of a 30 term loan. The rate adjusts annually after the first five years — up or down depending on the market — with a maximum adjustment cap** for the life of the loan.
Why choose the 5/1 ARM?
You may want to use a 5/1 ARM if you intend to live in your home for less than five years. You will also benefit from the following:
- Lower payments. Your payment will be lower since the intial five-year interest rate is less than a conventional 30 year loan rate.
- More options. If the home is not sold before the five year fixed portion of the loan is reached, you can either refinance or keep the loan as an adjustable rate until you sell the house.
- Purchasing power. You may be able to purchase a larger home because of the lower interest rate.
* The rate is current as of August 9, 2012. After the fixed-rate period, your interest rate will adjust up or down according to market rates at the time of reset. PMI=Private Mortgage Insurance, Flood and/or property hazard insurance may be required. All Credit Union loan programs, rates, terms and conditions are subject to credit approval and may change at any time without notice. 5/1/ARM: The payment on a 30-year $200,000 5-year Adjustable-Rate Loan at 2.75% and 80% loan-to-value (LTV) is $816.48 After 5 years, the maximum payment is $1009.06. These payments do not include taxes or insurance premiums. The actual payments will be higher; and rates provided are based on current market rates and are informational only. Payments are estimates and include only principal and interest.
** Interest rate adjustment cap limits increases or decreases in the interest rate at each adjustment to a maximum of 2.00% annually. Maximum Loan-To-Value is 80%. Lifetime interest rate cap limiting the interest rate increases to 6.00% over the initial interest rate.