Adjustable Rate Mortgage (ARM) Loans
What is an ARM? “ARM” stands for Adjustable Rate Mortgage. With this type of loan, the rate is locked in for three, five, or seven years and then adjusts once a year thereafter. Your rate can adjust up or down depending on the limits of your loan’s terms and its position in the market. These loans are great for buyers who want to lock in a low rate for a set number of years. Members with ARMs, may chose to refinance (pay off the existing loan with a new loan, especially if the interest rate is lower) at any time.
The advantages of an ARM include:
- A low down payment.
- A low, fixed interest rate for a set number of years.
If you have further questions regarding DuTrac Community Credit Union’s products or services, please contact one of our highly qualified real estate lending consultants by e-mail at firstname.lastname@example.org, in person at any of DuTrac’s convenient locations or by phone at (563) 582.1331, or (800) 475.1331.