Adjustable Rate Mortgage (ARM's)

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.

10-1 ARM

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.