Adjustable Rate Mortgages
Lock in a great low rate for a specified term.
For people who desire to lock in a lower rate (than with current conventional fixed-rate loans) for a 1-, 3-, 5-, 7- or 10-year term, our adjustable rate mortgages are an excellent choice.
MECU adjustable rate mortgages feature:
- no prepayment penalties
- competitive rates
- up to $1 million financing
- jumbo adjustable rate loans available
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24/7 online access to your accounts
At MECU, we even make repaying your loan hassle-free with automatic transfers that:
- transfer funds automatically from one MECU account to another
- ensure each payment is made on time
- save the time and expense of going to the credit union or mailing your payments
- avoid deposit withdrawal fees
How can adjustable rates vary?
With an ARM from MECU, your interest rate is periodically adjusted and is tied to a specified financial index. A 2.75% margin is then added to determine your new rate. Two examples:
5/1 ARM: After the initial rate period, the first adjustment, based on the index, could go 2% up or down. In subsequent years, it can only adjust up or down 2%. The lifetime cap of the loan cannot vary more than 6% from the initial rate. The loan rate will never fall below the 2.75% margin.
7/1 ARM: After the initial rate period, the first adjustment, based on the index, could go 5% up or down. In subsequent years, it can only adjust up or down 2%. The lifetime cap of the loan cannot vary more than 5% from the initial rate. The loan rate will never fall below the 2.75% margin.
For more information on choosing the ideal mortgage for you, call 847-576-5199 (877-270-6392 toll-free).
NMLS ID: 411839