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 2.375% interest rate and a 3.094% 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 3.094% 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 $1943.26 and would be adjusted after the fifth year.
5/5 ARM mortgage rates start at
3.094
%
APR*
*Rate of 3.094% APR (annual percentage rate) is subject to change. A sample payment on a 360-month term at 2.375% is $3.89 per $1,000.
Scam and Fraud Alert
Several Star One members reported receiving a phone call or text from a person claiming to be from Star One's fraud department with a caller ID reflecting 866-543-5202.
The caller is impersonating a Star One employee to gain your trust with the goal of getting access to your account.
The caller may try to reassure you that it's OK to share your information—please hang up, it's not OK, EVER!