The low payments of a traditional adjustable-rate mortgage plus greater rate security.
The 5-Year Adjustable Rate Mortgage (ARM) at Star One Credit Union—starting at 5.375% interest rate and a 5.780%[1] APR.
The 5/5 ARM combines lower initial payments with an extended period between rate and payment changes for greater rate security than traditional a ARM. This loan is best for homeowners that are willing to trade some risk of future interest rate increases for a lower start rate.
Advantages
- Lock in today's interest rate for at least five years
- Lower start rate compared to fixed-rate options
- Period and lifetime caps limit future interest rates increases
- Get an extended five-year period for changes in rate and payment compared to the traditional one-year adjustment after the initial interest rate period
- No prepayment penalty
5/5 Adjustable Rate Mortgage
30-Year 5/5 Adjustable-Rate Mortgage - Conforming
Rate
[1]
(5.780% apr)
5.375%
30-Year 5/5 Adjustable-Rate Mortgage - Jumbo
Rate
(5.884% apr)
5.375%
How the 5/5 ARM works
Your initial interest rate is guaranteed for the first five years. After that, the rate will adjust up or down every five years limited by a 2% period cap and 5% lifetime cap. The 5/5 ARM program is not available for investment properties.