The low payments of a traditional adjustable-rate mortgage plus greater rate security.
The 5/5-Year Adjustable-Rate Mortgage (ARM) at Star One Credit Union—starting at 5.500%Rate interest rate and a 5.981%APR[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
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.
Loan Services
Mortgage interest statement Form 1098
How to pay Star One loans
Homeowner and flood insurance