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Adjustable-Rate Mortgages
Embrace homeownership with an Adjustable-Rate Mortgage. We offer personalized solutions to fit your evolving home financing needs.
Take advantage of lower introductory rates and payments.
Adjustable-rate mortgages often come with a lower initial interest rate than that of a comparable fixed-rate mortgage.
Adjustable-Rate Mortgage Features
| CONFORMING/SUPER CONFORMING ARM | 0% DOWN | JUMBO ARM | |
|---|---|---|---|
| TERM | 5/54, 5/15 , or 7/16 | 7/13 | 5/57, 5/18, or 7/19 |
| MAXIMUM LOAN AMOUNT (1-UNIT, SAN DIEGO) | $1,006,250 | $766,550 | $2,250,000 |
| MAXIMUM LOAN AMOUNT (4-UNIT, SAN DIEGO) | $1,935,150 (consult a Mortgage Loan Officer) | N/A | N/A |
| MINIMUM DOWN PAYMENT | As low as 5%1 depending on loan amount | 0% Down3 | As low as 5%2 depending on loan amount |
| TRANSACTION TYPE | Purchase or Refinance | Purchase | Purchase or Refinance |
| PROPERTY USE | Owner occupied, 2nd home, Investment | Owner occupied | Owner occupied, 2nd home |
| PROPERTY TYPE | Single family, Condo, 2-4 Unit | Single family, Condo | Single family, Condo |
| MORTGAGE INSURANCE | Standard monthly premium | Standard monthly premium or No mortgage insurance | Standard monthly premium |
| LENDER CLOSING COSTS | $0 out of pocket options | $0 out of pocket options | $0 out of pocket options |
What is an Adjustable-Rate Mortgage (ARM)?
An adjustable-rate mortgage is a home loan with a variable rate and payment. ARM loans start with an initial interest rate that is typically lower than that of a comparable fixed-rate mortgage. The initial low interest rate is fixed for a period of time, after that the rate adjusts periodically. This means after the initial fixed-rate period your monthly payment could go up or down, depending on market conditions.
When should you consider an Adjustable-Rate Mortgage?
The primary advantage to an adjustable rate mortgage is that typically you'll get a lower initial rate and payment than that of a comparable fixed-rate mortgage. A lower initial rate could save you money on interest payments. You should consider an ARM loan if you:
- Are looking to buy a home and do not meet the qualification requirements for a fixed-rate mortgage (7/1 ARM9)
- Are a first-time homebuyer needing a lower payment during your first years as a home owner
- Would like to purchase a home with 0% down3
- Plan on selling or refinancing before the initial fixed-rate period is over
Review your options with a Mortgage Loan Officer.
Answer a few questions and a home loan expert will reach out to help you.
Home Loan Resources
Call or email to connect with a Mortgage Loan Officer.
Our friendly home loan experts are here to help!
858-636-3045 Mon-Fri, 9am - 4pm
realestateloanofficer@calcoastcu.org
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Having the right action plan can make buying a home a lot easier. Check out this helpful article with 8 tips for first-time home buyers.
APR= Annual Percentage Rate.
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5/5 ARM with an initial interest rate of 7.125% and APR 7.012%, subject to increase. This does not include property insurance and taxes. Payment example based on a 30-year term, property value $550,000, 95% LTV, single family, owner-occupied. Rates subject to change once every 5 years based on the weekly average of the 5-Year Constant Maturity Treasury (CMT) index rate as made available by the Federal Reserve Board, plus a margin of 2.50%. Maximum adjustment cap 2% every 5 years and 5% over the life of the loan. Rates and terms as of 12/28/2023.
- 5/5 Jumbo ARM with an initial interest rate of 7.125% and APR 6.998%, subject to increase. This does not include property insurance and taxes. Payment example based on a 30-year term, property value $800,000, 95% LTV, single family, owner-occupied. Rates subject to change once every 5 years based on the weekly average of the 5-Year Constant Maturity Treasury (CMT) index rate as made available by the Federal Reserve Board, plus a margin of 2.50%. Maximum adjustment cap 2% every 5 years and 5% over the life of the loan. Rates and terms as of 12/28/2023.
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Have a question about your account, applying for a loan or perhaps you're ready to talk refinancing? Whatever your question or need, our Member Service Center is always happily available to walk you through every step of the process with your best interest at heart.
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