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
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
Make a phone appointment when it's convenient for you.
A one-on-one call with a Mortgage Loan Officer can be extremely helpful. You can ask questions and even submit your application over the phone.
Take the next step and apply for a home loan online.
It's easy to get started with our secure, mobile-friendly application. Plus, you can always save your progress and pick up where you left off at a later time.
Review your options with a Mortgage Loan Officer.
Answer a few questions and a home loan expert will reach out to help you.
APR= Annual Percentage Rate.
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5/5 ARM with an initial interest rate of 6.625% and APR 6.601%, subject to increase and monthly payments of $3,187.94 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 9/9/2024.
- 5/5 Jumbo ARM with an initial interest rate of 7.250% and APR 6.585% and monthly payments of $3,240.34, subject to increase, 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 $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 9/9/2024.
