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Adjustable Rate Mortgages (ARM)

Boost your purchasing power with a home loan featuring a competitive rate, typically lower than fixed-rate options for the first five years.

Be financially prepped for an ARM

Considering a 5-Year ARM? This type of mortgage comes with an interest rate subject to change every five years throughout the life of the loan. Common situations for choosing an ARM include:

In a high-interest rate market

Take advantage of paying a lower interest rate for the initial five-year period.

Short-term buys

If you plan to sell your home within five years, an ARM may be a great choice. 

Room in the budget

If interest rates increase, you can afford potential increases in your monthly payment in the future.

Features of SECU ARM Loans

Finding and applying for a mortgage loan is a life-changing financial decision. No matter what stage of life you’re in, SECU has loan options and mortgage specialists to help you navigate it all.

  • Capped rate changes

    The interest rate can only be adjusted every five years with a maximum term of 30 years.1 The rate cap is 2% every five years or 6% over your initial interest rate during the life of the loan.

  • No private mortgage insurance (PMI) needed

    PMI is not required for SECU ARM Loans.

  • Low fees

    Our loans do not require application or credit report fees.2

  • Lending footprint

    Purchase or refinance primary residences, second homes, and investment properties in North Carolina, South Carolina, Virginia, Georgia, and Tennessee.

  • Tax and insurance included

    Your monthly payment includes principal, interest, and an estimated amount to cover annual property taxes and applicable insurance premiums.

Get pre-qualified for a mortgage

SECU offers no-cost, no-obligation pre-qualifications to members online, over the phone, or by visiting their local branch.

To receive a pre-qualification letter, SECU members must consent to a credit check and provide details on income, debt, assets, and residential and employment history. Once the application for pre-qualification is completed, a pre-qualification letter is typically generated within one business day.

Getting pre-qualified can help you:
  • Understand the home loan amount you can afford.

  • Shop with confidence knowing what range you can afford.

  • Demonstrate your creditworthiness in your offer.

  • Reduce timelines and potentially close on your dream home faster.

ARM rates

The rates shown are based on a $250,000 loan up to the maximum term length for a single family home.3 Payments represent principal and interest only; taxes and insurance are not included. Therefore, the actual payment obligation will be greater.

Loan typeLoan-to-value4,5,6Rates (APR7)
as low as
Monthly payment
5-Year ARM†80% or less6.000% (6.094% APR)$1,498.88 (years 1-5)
$1,498.88 (years 6-30)
5-Year ARM†80.01 - 90%6.325% (6.526% APR)$1,551.51 (years 1-5)
$1,576.95 (years 6-30)
5-Year ARM†90.01 - 100%6.650% (6.956% APR)$1,604.91 (years 1-5)
$1,656.88 (years 6-30)
First-Time Homebuyers (5-Year ARM†)100%6.650% (6.956% APR)$1,604.91 (years 1-5)
$1,656.88 (years 6-30)

†Maximum term of 30 years

Disclosures

Frequently asked questions about Adjustable Rate Mortgages

Adjustable rate mortgages, also known as variable-rate mortgages, have interest rates that may change periodically based on the corresponding financial index. Fixed rate mortgages have an interest rate that remains the same for the life of the loan.

You can’t calculate in advance exactly how much total interest you will pay since the interest rate may change over the life of the loan. However, you can find an estimate by using our mortgage payment calculator.

Closing costs are fees you pay when finalizing a home-buying or refinancing transaction. SECU assesses an origination fee based on your loan amount, which is capped at $2,500. The remainder of the charges, such as title insurance, appraisal fees, attorney fees, homeowners insurance, and property taxes, are paid to third parties. The loan estimate provided at the time of application estimates what closing costs you can expect.