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Adjustable Rate Mortgages (ARM)

Adjustable Rate Mortgages

The Credit Union offers unique Adjustable Rate Mortgage (ARM) products to purchase or refinance primary residences, second homes and rental properties located in North Carolina, South Carolina, Virginia, Georgia and Tennessee. Funds are collected with each payment, in addition to your principal and interest payment, to allow for the disbursement of the estimated annual tax and insurance premiums that will be due. These funds are placed in an escrow account until needed and earn dividends equal to the share account rate. Payments may be made directly to the Credit Union, through Payroll Deduction or Funds Transfer.


3 Ways to Request an Adjustable Rate Mortgage Loan
  1. Request at your local branch Loan Information Checklist
  2. Request via Member Access
  3. Request with our Contact Center (open 24 hours): (888) 732-8562 or (919) 857-2150

5-Year Adjustable Rate Mortgage

Because the interest rate may only be adjusted every five years, this product offers additional protection against rapidly rising rates1. The rate may not change by more than 2.0% every five years or 6% over the life of the loan.

Specifications

  • % Initial Rate for -year terms with 80% or less loan-to-value ( % APR2) Calculate Payment   Future rates and payments determined based on adding a margin of 3.0% to the index (1 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 3.25% and maximum adjustments every 5 years of 2.0% with a lifetime cap of 6%. The recent index is 0.25%.
  • % Initial Rate for -year terms with 80.1% - 90% loan-to-value ( % APR2) Calculate Payment   Future rates and payments determined based on adding a margin of 3.5% to the index (1 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 3.75% and maximum adjustments every 5 years of 2.0% with a lifetime cap of 6%. The recent index is 0.25%.
  • % Initial Rate for -year terms with 90.1% - 100% loan-to-value ( % APR2) Calculate Payment   Future rates and payments determined based on adding a margin of 4.25% to the index (1 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 4.50% and maximum adjustments every 5 years of 2.0% with a lifetime cap of 6%. The recent index is 0.25%.
  • % Initial Rate for -year terms with 100.1% - 110% loan-to-value4( % APR2) Calculate Payment   Future rates and payments determined based on adding a margin of 5.25% to the index (1 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 5.50% and maximum adjustments every 5 years of 2.0% with a lifetime cap of 6%. The recent index is 0.25%.
  • Maximum term of years
  • Origination fee .75% of loan amount (cap of $1,500)
  • No application fees or credit report fees
  • Private mortgage insurance is not required
  • 100% financing3 available for purchases and "no cash out" refinances of primary residences
  • Up to 90% financing available for purchases and refinances of primary residences
  • Up to 90% financing available for purchases and refinances of a second home. Only one second home per member is eligible for financing.
  • Up to 80% financing available for a rental property. Refinances are limited to the existing indebtedness on the property. Each member can finance one rental property.



1 Future interest rate changes will be determined based on the one year Constant Maturity Treasury (CMT) yield
2 APR = Annual Percentage Rate
3 100% financing up to maximum loan of $400,000.
4 The interest portion of the loan that is greater than the value of the dwelling is not tax deductible for Federal income tax purposes. Consult a tax advisor for further information regarding the deductibility of interest and charges.
5 Please note that not all Credit Union mortgage loans may be modified. Some loans have been sold to other lenders to provide funds to lend our membership. These loans are no longer owned by the Credit Union and therefore cannot be modified. Members who have an ARM no longer with the Credit Union are invited to refinance their loan with us to take advantage of these great rates.
*Quoted rates, dividends, annual percentage yields (APY) and rates (APR) are subject to change daily at the discretion of the Board of Directors.