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:
- Lower rate
- 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.
- Rate is locked in for 10 years, providing you the security of a fixed payment for a longer time than other ARMs.
- Borrow as little as $50,000.
- Borrow up to $510,400; higher amounts available at a different rate.
JHFCU also offers a 7-1 and 5-1 ARM.
JHFCU can only offer mortgages for properties in Maryland and surrounding states. Please contact JHFCU for details.
*Rates are determined by an evaluation of the applicant’s credit, loan term and loan-to-value (LTV). Minimum down payment of 5% required. Payments do not include amounts for taxes, insurance premiums or private mortgage insurance (PMI) , if applicable, actual payment obligation will be greater. Property and flood insurance may be required. Other restrictions may apply.