Life is always changing-your mortgage rate need to keep up. Adjustable-rate mortgages (ARMs) use the convenience of lower rates of interest upfront, supplying an adaptable, economical mortgage solution.

Adjustable-rate mortgages are built for flexibility
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Not all mortgages are created equal. An ARM provides a more flexible approach when compared to standard fixed-rate mortgages.

An ARM is perfect for short-term property owners, purchasers anticipating earnings growth, financiers, those who can handle threat, newbie property buyers, and individuals with a strong monetary cushion.

- Initial fixed term of either 5 years or 7 years, with payments calculated over 15 years or thirty years

- After the initial set term, rate adjustments take place no more than once each year

- Lower initial rate and preliminary regular monthly payments

- Monthly mortgage payments might decrease

Want to discover more about ARMs and why they might be an excellent suitable for you?

Have a look at this video that covers the basics!

Choose your loan term

Tailor your mortgage to your needs with our flexible loan terms on a 5/1 ARM or 7/1 ARM. These options feature an initial set term of either 5 years or 7 years, with payments calculated over 15 years or thirty years. Choose a shorter loan term to conserve thousands in interest or a longer loan term for lower regular monthly payments.

Mortgage loan pioneer and servicer details

- Mortgage loan pioneer information Mortgage loan producer info The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requires credit union mortgage loan originators and their utilizing institutions, as well as workers who function as mortgage loan producers, to sign up with the Nationwide Mortgage Licensing System & Registry (NMLS), obtain a special identifier, and keep their registration following the requirements of the SAFE Act.

University Cooperative credit union's registration is NMLS # 409731, and our specific producers' names and registrations are as follows:

- Merisa Gates - NMLS ID # 188870.
- Estela Nagahashi - NMLS ID # 1699957.
- Miguel Olivares - NMLS ID # 2068660.
- Michelle Pacheco - NMLS ID # 662822.
- Britini Pender - NMLS ID # 694308.
- Sheri Sicka - NMLS ID # 809498.
- Elizabeth Torres - NMLS ID # 1757889.
- David L. Tuyo II - NMLS ID # 1152000.


Under the SAFE Act, consumers can access info relating to mortgage loan pioneers at no charge by means of www.nmlsconsumeraccess.org.

Requests for info related to or resolution of a mistake or errors in connection with an existing mortgage loan should be made in composing via the U.S. mail to:

University Credit Union/TruHome. Member Service Department. 9601 Legler Rd . Lenexa, KS 66219

Mortgage payments may be sent by means of U.S. mail to:

University Credit Union/TruHome. PO Box 219958. Kansas City, MO 64121-9958

Contact TruHome by phone throughout service hours at:

855.699.5946. 5 am - 6 pm PST Monday-Friday, 6 am - 11 am PST Saturday

Mortgage choices from UCU

Fixed-rate mortgages

Refinance from a variable to a fixed interest rate to delight in foreseeable month-to-month mortgage payments.

- What is a UCU adjustable-rate mortgage? What is a UCU adjustable-rate mortgage? An adjustable-rate mortgage (ARM), also called a variable-rate mortgage or hybrid ARM, is a mortgage with a rates of interest that adjusts over time based on the marketplace. ARMs generally have a lower preliminary rate of interest than fixed-rate mortgages, so an ARM is a money-saving choice if you desire the typically most affordable possible mortgage rate from the start. Find out more

- Who would benefit most from an ARM? Who would benefit most from an ARM? An ARM is a terrific choice for short-term homebuyers, purchasers anticipating income growth, financiers, those who can manage threat, novice homebuyers, or people with a strong monetary cushion. Because you will receive a lower preliminary rate for the fixed period, an ARM is ideal if you're preparing to offer before that duration is up.

Short-term Homebuyers: ARMs use lower initial expenses, ideal for those preparing to offer or refinance quickly.
Buyers Expecting Income Growth: ARMs can be beneficial if income rises substantially, balancing out possible rate boosts.
Investors: ARMs can potentially increase rental income or residential or commercial property appreciation due to lower initial expenses.
Risk-Tolerant Borrowers: ARMs offer the capacity for substantial savings if rates of interest stay low or decrease.
First-Time Homebuyers: ARMs can make homeownership more accessible by decreasing the preliminary monetary hurdle.
Financially Secure Borrowers: A strong financial cushion assists mitigate the threat of prospective payment increases.
To qualify for an ARM, you'll generally need the following:

- A good credit score (the precise score varies by loan provider).
- Proof of income to show you can manage monthly payments, even if the rate adjusts.
- A reasonable debt-to-income (DTI) ratio to show your capability to deal with existing and brand-new debt.
- A down payment (often a minimum of 5-10%, depending on the loan terms).
- Documentation like income tax return, pay stubs, and banking statements.
Receiving an ARM can sometimes be much easier than a fixed-rate mortgage since lower preliminary interest rates suggest lower initial monthly payments, making your debt-to-income ratio more beneficial. Also, there can be more flexible criteria for qualification due to the lower initial rate. However, lenders may wish to ensure you can still pay for payments if rates increase, so excellent credit and steady earnings are key.

An ARM frequently comes with a lower initial rates of interest than that of a comparable fixed-rate mortgage, giving you lower month-to-month payments - at least for the loan's fixed-rate period.

The numbers in an ARM structure refer to the initial fixed-rate period and the change period.

First number: Represents the number of years during which the rate of interest stays fixed.

- Example: In a 7/1 ARM, the rates of interest is repaired for the first seven years.
Second number: Represents the frequency at which the rate of interest can adjust after the duration.

- Example: In a 7/1 ARM, the rates of interest can change annually (when every year) after the seven-year set period.
In easier terms:

7/1 ARM: Fixed rate for 7 years, then adjusts yearly.
5/1 ARM: Fixed rate for 5 years, then adjusts yearly.
This numbering structure of an ARM helps you understand for how long you'll have a stable interest rate and how typically it can change afterward.

Obtaining an adjustable -rate mortgage at UCU is simple. Our online application website is created to walk you through the procedure and assist you send all the necessary documents. Start your mortgage application today. Apply now

Choosing in between an ARM and a fixed-rate mortgage depends on your financial objectives and plans:

Consider an ARM if:

- You plan to sell or refinance before the adjustable period begins.
- You want lower preliminary payments and can handle potential future rate increases.
- You anticipate your income to increase in the coming years.


Consider a Fixed-Rate Mortgage if:

- You choose foreseeable month-to-month payments for the life of the loan.
- You prepare to remain in your home long-term.
- You desire defense from interest rate changes.


If you're not sure, speak with a UCU expert who can help you evaluate your choices based on your financial situation.

How much home you can afford depends upon numerous factors. Your deposit can differ from 0% to 20% or more, and your debt-to-income ratio will impact your approved mortgage quantity. Calculate your expenses and increase your homebuying knowledge with our practical ideas and tools. Learn more
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After the initial set period is over, your rate might get used to the market. If dominating market interest rates have decreased at the time your ARM resets, your month-to-month payment will also fall, or vice versa. If your rate does increase, there is constantly a chance to re-finance. Discover more

UCU ARM prices based upon 1 year Constant Maturity Treasury (CMT). Rates subject to alter. All loans are available for purchase or refinance of primary residence, second home, investment residential or commercial property, single household, one-to-four-unit homes, prepared system advancements, condominiums and townhouses. Some limitations may apply. Loans released based on credit evaluation.