IBMSECU’s 5/5 ARM is an Adjustable Rate Mortgage, and like other ARMs it offers an initial low fixed-rate (lower than a 30-year fixed-rate mortgage) followed by an adjustable-rate phase for the remainder of the loan.
However, unlike the typical 5/1 ARM that can adjust its rate annually after the initial 5-year fixed-rate period, our 5/5 ARM’s Annual Percentage Rate can only adjust every 5 years for the life of the loan!
Plus, each rate adjustment is capped at 2% above your previous rate and the maximum rate increase over the life of the loan is capped at 6% above your initial rate!* Even if the worst case scenario occurred and rates dramatically increased, it would take 15 years for your 5/5 ARM to reach the maximum rate. In comparison, the 5/1 ARM could reach its maximum rate in just 7 years.
In addition to low initial rates and peace of mind knowing that your rate won’t skyrocket in a few years, our 5/5 ARM is also offered with extremely low closing costs! Your closing costs are limited to appraisal, escrows, insurance, real estate taxes, and mortgage and deed taxes. There are no closing costs coming from the Credit Union! This can be a savings of over $3,200 at closing!*
*First Mortgage must be funded and serviced by IBMSECU. Credit subject to approval, income and identification verification. 2% periodic cap every five years; 6% lifetime change cap. Contact a Mortgage Advisor for more information on the rates, terms, fees and conditions that may apply. The $3,200 savings is for a $150,000 loan to purchase a $200,000 home in Florida using the 5/5 ARM loan as compared to a conventional fixed rate mortgage.