ARMs start off with a fixed rate for a predetermined period, then adjust once a year - higher or lower depending on the market at the time. This option may be ideal if you only plan to live in the home for a few years, expect interest rates to remain the same, or expect to have an increase in income.
For the borrower who thinks they might move within 10 years, or who just wants a loan rate locked in for 10 years the 10-1 ARM is an excellent option. With JHFCU’s 10‑1 ARM, your payments are based on a 30-year term to keep them affordable, but your low rate is locked for 10 years!
Benefits of this unique product include:
- You get a lower rate
- You get a lower payment with the 30-year-term as the payments are amortized over the longer period and thus affordable—providing you flexibility within your budget.
- Your rate is locked in for 10 years, providing you the security of a fixed payment for a longer time than other ARMs.
- Annual adjustments after the initial 10 years are capped at 2%.
- You can borrow as little as $50,000.
- You can borrow up to $417,000; higher amounts available at a different rate.
JHFCU also offers a 7-1 and 5-1 ARM, or a “Golden ARM”, which is based on the Prime rate vs. the LIBOR.*
JHFCU can only offer mortgages for properties in Maryland and surrounding states. Please contact JHFCU for details.
*Golden ARM—Rate is based on Prime minus 2% with a current floor of 4% APR. APR= Annual Percent Rate. Adjusts annually. Contact JHFCU for current rates. Other restrictions may apply.