If you've ever asked yourself if there was an option to get a lower rate or a way to get a lower payment when looking at purchasing a home in the current market conditions, you are not alone. LOC and our Adjustable Rate Mortgages are here to help!

What is an Adjustable Rate Mortgage?
An Adjustable-Rate Mortgage (ARM), is a type of home loan with an introductory interest rate that will last for a select period before adjusting at intervals for the remainder of the loan.
With an LOC Credit Union ARM, you'll have the option to pick a lower rate for an initial term of either 5 or 7 years.

Adjustable Rate Mortgages:
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Provide more flexibility to qualify a buyer to be approved
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For borrowers with a credit score under 780 and under, the impact to your rate is less than it would be if you were doing a fixed-term mortgage
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Are initially priced lower than 30-year fixed
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Offer cash out refinance options available up to 90% (PMI required if over 80% LTV)
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Can help a borrower pay down principle faster or better manage cash flow
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Excess cash can be used to pay down other debt or towards retirement contributions

What makes our ARMs unique?
- Lower caps on rate changes
- Most lenders have a 6% life cap on the rate change compared to LOC at 5%
- Frequency of rate changes
- Most lender ARMs have an adjustment period on rate of every 6 months after the first adjustment. LOC is a minimum of 1 year or an option of less changes with product offerings with rates adjusting every 3 or 5 years
- Fixed Rate Conversion feature
- Assumable feature
Features and Benefits of Adjustable Rate Mortgages

Lower Rates
Offers a rate that can be up to 1.50% less than a conventional 30-year fixed mortgage.

Future Savings
Borrowers can obtain substantial saving on refinance costs if rates drop down and you want to move to a fixed rate loan.

Financial Flexibility
Great option when selling a property to a family member.

Increase Your Purchase Power
Provide more flexibility for a qualified buyer to be approved.
Let Our Real Estate Lending Experts Go to Work For You!

Debby Priskorn
NMLS: #504365
Real Estate Lending Consultant
248.522.2324
dpriskorn@loccreditunion.com

Schedule an Appointment
Our Real Estate Lending team is standing by with a no obligation consultation, ready to answer any questions you may have about the home buying process.

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Homeowners Insurance
Two exclusive group discounts and experienced professionals to make saving on your insurance easy!
Adjustable Rate Mortgage FAQs


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It’s easy to become a member of LOC Credit Union!
Membership is open to anyone who lives, works, worships, or attends school in the state of Michigan.
A current or eligible member's immediate family (spouse, sibling, child, grandchild, parent, grandparent) or an individual living in the same household of a current or eligible member can also join LOC.
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