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.*
  • 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, 21, and 26).

In the rising rate environment that we're currently experiencing, 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!​

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 in the adjustable-rate period of an ARM, the interest rate is based on a margin of (xx%) plus the current ______ (name) index rate as published in the Wall Street Journal subject to 5 year and lifetime caps.  

* As an example: The initial payment on a 30-year $200,000 5-year Adjustable Rate Loan is 2.99% at 70% loan-to-value (LTV) is $842.14 with 2.25 points due at closing. The current Annual Percentage Rate (APR) is 3.244% effective 10/1/2022. After the initial 5 years, your interest rate can change (e.g. every 5 years) and is subject to an initial interest rate cap of 2.00% and a rate cap of 2.00% every 5 years and a lifetime cap of 6.00%. Payment amount shown does not include taxes and insurance premiums. The actual payment amount will be greater. At the first adjustment, the interest rate cannot increase above 4.99% or decrease below 2.25% (the margin). If the interest rate reached the lifetime maximum cap of 8.99%, your payment would be $ (Max. payment). Actual payment amounts will vary annually after the fifth year based on changes in the index as published in the Wall Street Journal.

Adjustable-Rate Mortgages available only for singe family, townhomes, condominiums and multi-family homes. 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. Priimary residence consumer mortgages only. Visit fedchoice.org for current rates and additional information. Refinancing available for members who hold a mortgage at an outside financial institution (FedChoice mortgages may not be refinanced).

 

 

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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.