Westerra’s ARMs have muscle.
Thinking about an Adjustable Rate Mortage? Westerra’s team has all the experience, expertise, and arm puns needed to get you into the loan that packs the most punch.
What’s an ARM?
An ARM, or Adjustable-Rate Mortgage, is a great choice for members looking for a flexible loan with lower initial payments. Most ARMs have a fixed segment of 5, 7, or 10 years, but beware – these loans are called “adjustable” because the loan rate will change (up or down) based on the market once the fixed period has passed.
Is an ARM the right pick for me?
You might pick an ARM if you're expecting an upcoming pay raise but want a lower rate now, plan to sell or refinance your home before the rate would adjust, or need some help with loan qualification. Some investors choose ARMs so they can keep more money growing through investing strategies in the early years of the loan. At the end of the day, the best folks for an ARM are those who are flexible: Your rate could lower (woo!) or increase (not so woo) based on factors outside of your control, so best be ready to ride any potential waves.
Like most loans, ARMs aren’t a one-size-fits-all solution.
Choosing the right mortgage option can feel a bit overwhelming, and we totally get it. But if you can get your kids to school on time (or even a few minutes late – we won't judge!), then you’ve got what it takes to get into your dream home. No matter what you call it – ARM or otherwise – we’re here to support you every step of the way.
Frequently Asked ARM Questions
An adjustable-rate mortgage (ARM) is a type of home loan where the interest rate is initially fixed for a set period, such as five, seven, or 10 years. After the initial fixed-rate period, the rate adjusts periodically based on market conditions. ARMs can offer lower rates at the start, which could save you money in the early years of the loan.
Short Answer: Maybe.
Long Answer: It depends on your financial situation. ARMs can be a good fit if you plan to sell or refinance your home before the rate adjusts, or if you're anticipating a pay raise in the near future. However, if you're looking for predictability in your payments, an ARM may not be the best option. Speaking with a mortgage expert at Westerra Credit Union can help you determine the best choice for your situation.
Lower Initial Payments: ARMs often offer a lower initial rate compared to a fixed-rate mortgage.
Potential for Lower Long-Term Costs: If interest rates stay low or drop, you could benefit from lower payments over time.
Greater Borrowing Power: ARMs can help you qualify for a larger loan compared to a fixed-rate mortgage, making it easier to afford your dream home.
Interest Rate Increases: After the fixed-rate period ends, your rate could increase, leading to higher monthly payments.
Uncertainty: If market conditions change, your payments may fluctuate, making budgeting more difficult.
Refinancing Challenges: If your credit score drops or interest rates rise, refinancing may become more expensive or difficult.
When applying for an adjustable-rate mortgage (ARM) at Westerra Credit Union, you can expect a smooth and transparent process. First, you’ll meet with one of our mortgage experts to discuss your financial goals and determine if an ARM is the right fit for you. We’ll guide you through the details of the loan, including the fixed-rate period, potential rate adjustments, and caps. Once you’ve decided on the best loan option, we’ll help you gather the necessary documents, such as income verification and credit history. Our team will be with you every step of the way to ensure your application is processed efficiently and to answer any questions you may have. Let’s get started today and find the right mortgage for you!
Loan approval is subject to credit approval and program guidelines. Credit Union membership required. Interest rate and program terms are subject to change without notice.
*Annual Percentage Rate (APR) is the cost of the loan in percentage terms, taking into account various loan charges such as Prepaid Finance Charges (discount points, processing and underwriting fees, flood certificate, tax service, closing and wire fees, prepaid interest) and Private Mortgage Insurance (if applicable). Refi scenarios based on rate and term transaction, 760+ FICO, $400K or $900K (Jumbo) loan amounts at 60% LTV. Purchase scenarios based on 760+ FICO, $500K or $900K (Jumbo) loan amounts at 60% LTV. Variables such as LTV, CLTV, credit score, cash out, occupancy and property type, etc., could affect rate and APR. Rates are based on individual credit history and are subject to change without notice. Rates are for conventional-conforming loans only. Other rates and terms may apply for Jumbo and nonconforming/specialty portfolio programs. Please contact a Westerra Credit Union Mortgage Loan Officer at 303-321-4209 for more details. Westerra Credit Union NMLS 421606.
