5/5 Adjustable-Rate Mortgage
Flexibility now, and in the future
The 5/5 Adjustable-Rate Mortgage (ARM) loan from RBFCU locks in your interest rate and payment for the first five years of your loan. After the initial term has lapsed, your interest rate and payment are subject to change (up or down) every five years for the remaining loan term. Refinance if rates go down or sell at any time. With a minimum down payment of 5% and an initial low-interest rate, the 5/5 ARM offers a fresh perspective on home financing.
To speak to the Mortgage Department, call 210-945-3300, select option 3, then option 2.
Low closing costs
By eliminating some of the upfront costs, RBFCU helps you turn your dream into reality. Qualifying loan types include: Conventional fixed-rate, 100% Financing, Jumbo, Construction and 5/5 adjustable-rate.
In addition, members have the option to purchase discount points to lower their rate.
Let us walk you through the mortgage loan process
1. Get prepared
Buying a home is a big commitment and you’ll want your finances to be in good condition before you start the process to ensure the best possible outcome. Gather your financial information, like recent tax returns, financial statements and pay stubs; your loan application will let you know what financial information is necessary. You should also review your credit score, take a look at your debt-to-income ratio (DTI) and take other important steps to position yourself for receiving the best possible loan terms. Click the button below to read our document on “Maintaining Your Financial Status and Credit Score” for tips to help guide you through the process.
2. Decide what you can afford
3. Get pre-approved
Once you know how much home you can afford, complete the application for a pre-approval letter. The pre-approval will let sellers know that you are a qualified buyer who is prepared to make a home purchase.
4. Find your home
5. Complete paperwork
You’ll complete the application process you started with your pre-approval request by submitting your documents and continuing through the loan process. This may sound simple, but it can be a big undertaking, depending on your employment status, residency, etc.
6. Finalize your loan
Our Mortgage Lending Team will help you through each step of the loan process and make sure you know everything you need to know to close your loan with confidence.
Ready to apply for a loan? Here's what you'll need to complete the application:
- The amount you would like to borrow
- The number of years you want to finance your loan (term length)
- Your current employment and income information
- Your phone number and email
- Information for joint borrowers you plan to include on the mortgage loan (including date of birth, address, income and employment, Social Security number and contact information; if applicable)
- An idea of the total amount you would like for your loan and monthly payments
For a list of all the documents often required to complete your purchase, download our Mortgage Application Checklist.
Why might an ARM be a good choice for me?
An ARM can be a great option to provide the flexibility you need now if you expect future income growth, or if you plan to move or refinance within a few years.
Get your credit score purchase-ready
Coach Lea can help!
When preparing to purchase a home, it’s important to get your financial house in order. From reviewing your credit history to understanding financing options, the process can feel overwhelming.
Don’t worry, Coach Lea is here to help! Lea is a Virtual Financial Coach that offers free financial advice 24/7 on things like cash flow, debt repayment and strengthening credit.
And if you think you may want to dig in deeper, the financial experts at GreenPath Financial Wellness are a call away. GreenPath is a trusted non-profit that has been helping people lead financially healthy lives for more than 60 years.
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Which loan type is better: a fixed-rate mortgage loan or an adjustable-rate mortgage (ARM) loan?
The choice depends on your financial goals. A fixed-rate mortgage offers the security of an interest rate that does not fluctuate during the life of your loan. So when interest rates are low, many prefer a fixed-rate mortgage. When interest rates are high, an ARM can offer the benefit of receiving a lower rate, which may help you qualify for a larger loan.
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Does RBFCU offer other options besides a 5/5 adjustable-rate mortgage (ARM) loan?
No, not at this time.
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On a 5/5 adjustable-rate mortgage (ARM) loan, how frequently can my interest rate and payment increase?
A 5/5 adjustable-rate mortgage (ARM) loan locks in your interest rate and payment for the first five years of your loan. After the initial term has lapsed, your interest rate and payment are subject to change (up or down) every five years for the remaining loan term.
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I’ve heard that adjustable-rate mortgage (ARM) loans are risky. Is that true?
ARM loans offer the opportunity to get into the house of your dreams sooner than you think. At the same time, it is best to understand how an ARM loan works and to ensure it meets your overall financial plans. Call our Mortgage Department at 210-945-3300 and speak with a Mortgage Lending Representative.
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How soon will someone from RBFCU contact me after I’ve submitted my mortgage application?
Once you submit your mortgage loan application for review, RBFCU will contact you within 24 hours, unless it’s a weekend application.
Still have mortgage questions?
Loans subject to credit approval. Rates and terms subject to change without notice. Mortgage loans available only on property in Texas. Origination fee program not available for short term loans. Your interest rate can change in 60 months, and every 60 months thereafter beginning with payment number 61. Loans requiring PMI or piggyback financing are subject to additional qualifications, are limited to your primary residence and may require a larger down payment. Jumbo loans may require larger down payments and additional qualifications. NMLS# 583215.
