5/5 Adjustable Rate Mortgage
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 2.625% interest rate and a 2.689% 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.
Advantages
- Lock in today's interest rate for at least five years
- Lower start rate compared to fixed-rate options
- Period and lifetime caps limit future interest rates increases
- Get an extended five-year period for changes in rate and payment compared to the traditional one-year adjustment after the initial interest rate period
- No prepayment penalty
How the 5/5 ARM works
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 2.689% 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 $2008.25 and would be adjusted after the fifth year.
5/5 ARM mortgage rates start at
2.689
%
APR*
*Rate of 2.689% APR (annual percentage rate) is subject to change. A sample payment on a 360-month term at 2.625% is $4.02 per $1,000.
Scam and Fraud Alert
Please remember that Star One employees will never call you to verify or ask for your personal information.
Hang up immediately if someone claiming to be a Star One employee asks for any banking information—such as your Online Banking login information, account numbers, card PINs, or one-time passcodes.
A fraudster may try to reassure you that it's OK to share your information—please hang up, it's not OK.
Several Star One members have received phone calls from a person claiming to be a Star One employee—with a caller ID forged to look like a Star One phone number—and whose goal is to gain access to members' bank accounts online.