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.
5/5 ARM mortgage rates start at
2.942
%
APR*
*Rate of 2.942% APR (annual percentage rate) is subject to change. A sample payment on a 360-month term at 2.875% is $4.15 per $1,000.
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.