Routing Number: 307070021

Adjustable-Rate Mortgages

What is an Adjustable-Rate Mortgage?

Adjustable Rate Mortgages (ARMs) begin with an introductory rate followed by an adjustment based on an index that can fluctuate with market conditions.

We offer a 5 or 7 year initial term in which your rate will remain the same. After this initial period, the rate adjusts based on a set interval. This adjustment is determined on market conditions. Apply today or schedule an appointment with a mortgage loan officer to get more details.

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Adjustable-Rate Mortgage Benefits:

  • 5 years at 5.64% APR* or 7 years at 5.72% APR* for initial term options

  • Initial monthly payment lower than a traditional fixed-rate mortgage

  • Easy and secure online application, plus most of the loan process can be done from the comfort of your home

Does an ARM fit your unique situation?

ARMs are a great option if you:

  • Plan on moving prior to the end of the initial term

  • Want a home with lower monthly payments

  • Just getting started in your career and anticipate higher wages in the future 

ARMs contain a lot of different numbers, let's break it down!

Example: A 5/6 ARM, SOFR index, with a 2.75% margin, 2/2/5 caps.   

First number (5) represents the number of years the interest rate will remain the same

Second number (6) represents how often the rate will change. In this example, the rate will adjust every 6 months after the initial term

Margin (2.75%) A margin is the percentage added to the current SOFR index number at the time of each adjustment

Caps (2/2/5)

  • First number (2) represents the maximum percentage your rate can change after the initial 5 year term
  • Second number (2) represents the maximum percentage of each adjustment after the mortgage adjusts the first time following the initial period of 5 years
  • Third number (5) represents the maximum percentage the rate can adjust over the lifetime of the loan

SOFR Index (Secured Overnight Financing Rate) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. The values are published by the Federal Reserve Bank of New York.

Contact our Mortgage Lending Team today! 

Call Us

719.264.1207 or 800.223.1983

*APR=Annual Percentage Rate is effective 11/27/2022 and includes an origination fee of $1199. Rates are subject to change. A example of a 5/6 payment for $320,000 loan with a 5.375% rate and 5.642% APR, the first 60 payments are $1791.91 followed by 300 payments that could range from $1364.00 to $2753.00 based on a minimum rate of 2.75% and a maximum rate of 10.375%. A example of a 7/6 payment for $320,000 loan with a 5.625% rate and 5.723% APR, the first 84 payments are $1842.00, followed by 276 payments that could range from $1394.00 to $2765.00, based on a minimum rate of 2.75% and a maximum rate of 10.625%. Examples assume a property value of $400,000 and a loan to value of 80%. Above payment examples don’t include taxes and insurance. Actual payments may be higher. Closing costs don’t include buy downs, escrows or subordination fees (if applicable). The values are published by the Federal Reserve Bank of New York. Membership Requirements Apply. Restrictions and requirements apply. Subject to approval. Rates and terms are subject to change without notice. Equal Opportunity Lender. Air Academy Federal Credit Union: NMLS#454287