5/5 Adjustable Rate Mortgages (ARM)
Affordability and stability— all in one home loan!
Lock today's rate for at least 5 years.3
Interest rates will adjust at the five-year mark, but don’t worry— Cal Coast has your back. We cap your interest rate adjustments to keep your monthly payments predictable and within reach, as your rate adjusts only once every five years.
What is a 5/5 ARM loan?
A 5/5 ARM loan is an adjustable-rate mortgage that offers a fixed interest rate for the first five years.
At Cal Coast we've gone the extra mile to support members who get a 5/5 ARM loan. Many ARM loans have their interest rates adjusted annually, but with our 5/5 ARM rates are only modified once every 5 years. We've also set a maximum adjustment cap of 2% every 5 years, and 5% over the life of the loan. This member-centric approach can help shield you from unwelcome payment surprises.
- Rate adjusts only once every 5 years
- Low interest rate with affordable initial payments
- $0 out of pocket options available
- Lender-paid mortgage insurance option available
- Interest may be tax deductible (please consult your tax advisor)
When should you consider a 5/5 ARM loan?
You may be able to save money by choosing a 5/5 ARM, as these loans typically offer a lower initial interest rate compared to fixed-rate mortgages. A 5/5 ARM loan may be a good option if you:
- Are looking to purchase a home with 5% down1
- Plan to refinance or sell your home in the next 5 years
- Are a first-time homebuyer needing a lower payment during your first years as a home owner
With a 5/5 ARM, enjoy peace of mind— and your dream home!
Features
| 5/5 ARM | 5/5 ARM ADVANTAGE | |
|---|---|---|
| TERM | 5/5 ARM | 5/5 ARM |
| MAXIMUM LOAN AMOUNT | $2,250,000 | $2,250,000 |
| MINIMUM DOWN PAYMENT | As low as 5% depending on loan amount1 | As low as 5% depending on loan amount2 |
| TRANSACTION TYPE | Purchase or Refinance | Purchase or Refinance |
| PROPERTY USE | Owner occupied, 2nd home, Investment | Owner occupied, 2nd home, Investment |
| PROPERTY TYPE | Single family, Condo | Single family, Condo |
| MORTGAGE INSURANCE | Standard monthly premium | Lender-paid |
| LENDER CLOSING COSTS | Seller credit allowed | $2,500 lender credit³, Seller credit allowed |
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
Boost your offer with a Cal Coast preapproval letter.
A personalized preapproval letter shows sellers you’re a serious buyer. See what it takes to get preapproved in as little as 24 hours.
Familiarize yourself with the home buying process.
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
- 5/5 ARM with an initial interest rate of 6.375%, APR 7.146% and monthly payments of $3,137.55 inclusive of mortgage insurance. This does not include property insurance and taxes. Payment example based on a 30-year term, property value $500,000, 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 09/22/2023.
- 5/5 ARM Advantage with an initial interest rate of 7.000%, APR 7.153% and monthly payments of $3,160.19, there is no mortgage insurance for this loan. This does not include property insurance and taxes. Payment example based on a 30-year term, property value $500,000, loan amount $475,000, 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 09/22/2023.
Don't be a stranger, we're your neighbor
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.
Not a Cal Coast member? Join now or learn more!
