Planning on buying a newly constructed home? Feel confident knowing your rate is locked in a fluctuating rate environment. Financing a new home is a bit different than the typical financing of a previously owned home. Consider a SEFCU Mortgage Services long-term rate lock!
10/1 and 5/1 Adjustable Rate Mortgage (ARM)
Are you in the market for a home and searching for a product that will allow you to enjoy a lower interest rate the first few years of your mortgage? SEFCU Mortgage Services offers a 10/1 adjustable-rate mortgage that could be exactly what you’re looking for.
What is an ARM?
An adjustable-rate mortgage (ARM) offers a fixed rate for a specified term and then the rate becomes adjustable for the remainder of the mortgage. For a 10/1 and 5/1 ARM the rate is fixed for the first 10 or 5 years providing you the security of knowing your mortgage payment will remain the same during that time. After the first 10 or 5 years your interest rate will adjust annually (the “1” in the “10/1 and 5/1 ARM”) so your payment could fluctuate from year to year.
9-Month Rate Lock
If you’re building a home, SEFCU Mortgage Services offers you the option to lock your interest rate for up to six months! Choose this option for 5/1 ARMs, 10/1 ARMs, or 10-, 12-, or 15-year fixed-rate mortgages and feel confident your rate is locked in a rising interest rate environment. Best of all, you’ll have the security of knowing your mortgage payment early in the process!