5/5 Adjustable Rate Mortgage

Enjoy the lower rate of an ARM with some of the stability of a fixed-rate mortgage.

How It Works:

Unlike a traditional 5/1 ARM that can adjust yearly after the five-year initial rate, this 5/5 ARM that can only adjust once every five years. This means the rate is subject to adjustment once in the first ten years. It offers the lower rate of an ARM with some of the stability of a fixed-rate mortgage.

Features:

  • Available for purchases or refinances
  • Primary and secondary residences are eligible, but not investment properties
  • One rate up to $1,000,000 – jumbo loans included!
  • Borrow (or cash out) up to 80% loan to value (LTV)
  • Maximum rate cap of 2% per adjustment period, with a lifetime maximum of 5%
  • Loan held and serviced by APL FCU, not sold and eligible for rate refresh program
  • 5/5 format means only one adjustment period in the first 10 years
Apply Closing Cost Definitions 

* This 5/5 Adstable Rate Mortgage is available on primary and secondary residences located in Maryland, Delaware, Virginia, West Virginia, Pennsylvania and Washington, DC. Subject to underwriting approval and APL FCU membership eligibility. Available for new business only. Members with current in-house first mortgage loans and seconds not eligible. Appraisal required and an application fee applies. LTV limit of 80%, with CLTV limit of 90%.

Terms: 5.500% introductory rate; 0 points. Member allowed to escrow with 80% LTV and 0.125 point cost. Lock-in period of 50 days. Interest only not allowed. Minimum financing amount $100,000. Floor Rate: 2.875%. Index: 5 Yr CMT. Margin: 2.875%. Rate Cap: 2/5 (2% maximum per adjustment period, 5% maximum above the initial interest rate over the life of the loan). For more information, stop by any APL FCU branch or call 443-778-5250 to speak with a credit union representative.