Adjustable Rate Mortgage
One way to benefit from a lower rate right now is the Adjustable Rate Mortgage (ARM) loan, also referred to as a variable rate mortgage, which features an interest rate that is indexed to a published rate plus a margin. The rate will remain fixed for a set period of time and will adjust accordingly.
We offer a wide range of adjustable-rate mortgage products to suit your individual home loan needs.
Our adjustable-rate mortgage loans:
3/1 year ARM – the rate is fixed for the first three years and is adjusted every 12 months thereafter
5/1 year ARM – the rate is fixed for the first five years and is adjusted every 12 months thereafter
Advantages of an Adjustable Rate Mortgage:
- Feature lower rates and payments early on in the loan term which equate to lower payments for qualifying buyers.
- If rates fall an ARM allows borrowers to take advantage of falling rates without refinancing – no refinancing costs.
- Help borrowers save and invest money in a high-interest account – someone who is paying $150 less with an ARM can take that money and save it in a higher-yielding investment.
- Offer an inexpensive alternative for borrowers who don’t plan on living in one place for very long to buy a house
After the initial period, the rate is adjusted periodically, but your rate will never exceed a predetermined interest rate cap at each adjustment, as well as a lifetime interest rate cap.
Property must be located within a 100-mile radius of the Members Plus Credit Union’s main office located in Medford, MA.
Still have questions? Please call 781-905-1500 and ask to speak to someone within Mortgage Lending and a Lending Associate will get back to you within the next 24 hours. Or start your application online today!