Adjustable Rate Mortgages (ARMs)

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Adjustable-Rate Mortgages (ARMs) 

 

FedChoice is happy to announce that two different Adjustable-Rate Mortgages (ARMs) are now available!

  • 15-15 Adjustable-Rate* Mortgage has a fixed interest rate for the first 15 years and only adjusts one time, after the first 15-year period has passed.* This rate adjustment will also be a fixed interest rate for the remaining 15-year term.
  • 5-5 Adjustable-Rate* Mortgage has a fixed interest rate for the first 5 years (60 months) and then adjusts in year 6 and every 5 years afterwards (years 6, 11, 16, 21, and 26).* Each adjustment will also be a fixed rate.

In a rising rate environment, an Adjustable-Rate Mortgage may be a perfect loan product for a first-time home buyer and for members seeking an economical financing solution to purchase their next home.

Your mortgage payment may be lower than a "standard" 30-year fixed rate mortgage plus you could save thousands in interest over the term of the loan!

Call the FedChoice Real Estate Department at 301.699.6126 to speak with a Real Estate Loan Officer today to learn more about these loan options!​

Mortgage: Rates and terms are based on credit criteria; your rate may differ. All loans subject to credit approval. Adjustable-rate mortgages are fixed for a specified period of time before they transition to an adjustable or variable rate. After the initial fixed-rate period, the interest rate can increase or decrease significantly during the remaining term of the loan, according to the market index. Any change may significantly impact the monthly payment.

An adjustable-rate mortgage allows the financial institution to change the interest rate at certain points during the term of the loan. Adjustable-rate mortgages often start out with a low interest rate, even sometimes below market rates. The rate can increase or decrease significantly over the life of the loan.  

In the adjustable-rate period of the 15-15 ARM, the interest rate charged is based on the current FedChoice 15-year fixed mortgage rate with a first period maximum rate cap of 2% above the current rate subject to a lifetime rate cap maximum of 5% above the current rate, based on the SOFR Index Value for ARMs.

In the adjustable-rate period of the 5-5ARM, the interest rate charged is based on a quarter percent below the current FedChoice 30-year fixed mortgage rate with a first period maximum rate cap of 2% above the current rate subject to a lifetime rate cap maximum of 5% above the current rate, based on the SOFR Index Value for ARMs.

* Adjustable-Rate mortgages available only for single family, townhomes, condominiums and multi-family homes and non-FedChoice mortgage refinances. Not available for Co-operatives, manufactured or mobile homes. Origination fee (1% of the loan amount). Maximum loan amount determined by the County Conforming Limit. Offer may be discontinued or subject to change without further notice provided to you. Primary residence consumer mortgages only. FedChoice NMLS # 399841 provides mortgage loans by partnership with myCUmortgage, LLC. NMLS #  565434 and Credit Union Mortgage Association (CUMA) for properties located in AK, HI and NY. NMLS # 296727. Visit fedchoice.org for current rates and further information. 

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Home Mortgage Disclosure Act Notice

The HMDA data about our residential mortgage lending are available for review. The data show geographic distribution of loans and applications; ethnicity, race, sex and income of applicants and borrowers; and information about loan approvals and denials. Inquire at this office regarding the locations where HMDA data may be reviewed. To receive a copy of this information, send a written request to FedChoice Federal Credit Union, 10001 Willowdale Road, Lanham, MD 20706.