The low payments of a traditional adjustable-rate mortgage combine with low adjustable caps for greater rate security.
The 5-Year Adjustable Rate Mortgage (ARM) at Star One Credit Union—starting at 2.875% interest rate and a 2.942% APR1.
The 5/5 ARM combines lower initial payments with an extended period between rate and payment changes for greater rate security than traditional a ARM. This loan is best for homeowners that are willing to trade some risk of future interest rate increases for a lower start rate.
Your initial interest rate is guaranteed for the first five years. After that, the rate will adjust up or down every five years limited by a 2% period cap and 5% lifetime cap. The 5/5 ARM program is not available for investment properties.
1. APR=Annual Percentage Rate. Current rate 2.942% APR is subject to change. For example on a 30-year 5/5 ARM loan of $500,000, you would make 360 monthly payments. The monthly payment in the first five years would be $2041.21 and would be adjusted after the fifth year.
Remember that Star One employees will never call you to verify or ask for your personal information.
Providing your personal information, such as card PINs, online banking credentials or one-time passcodes, to anyone may make you responsible for any fraudulent activity that happens on your Star One accounts.