Adjustable-Rate Mortgages

Flexibility now, and in the future

An adjustable-rate mortgage (ARM) loan from RBFCU has a fixed interest rate for the first five years. After that, the rate can change every five years for the remaining life of the loan. When the rate of your ARM changes, your monthly payments will increase if the rate goes up and decrease if the rate falls.

To speak to the Mortgage Department, call 210-945-3300, select option 3, then option 2.

Important Mortgage Application Information

RBFCU is currently experiencing a high volume of mortgage refinance applications. We are prioritizing purchase applications to ensure we meet closing dates, but will process your refinance requests as quickly as possible. We appreciate your patience and thank you for your loyalty to RBFCU.

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Let us walk you through the mortgage loan process


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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 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.

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2. Decide what you can afford

Before you begin shopping for a home, take a look at your budget and current expenses to determine what you can afford. You'll want to evaluate your monthly incoming and outgoing funds to see where a down payment, closing costs and your new mortgage payment might fit in.

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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.

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4. Find your home

Now's the time to determine all the traits that make up your perfect home. Research areas and neighborhoods of interest. Also, connect with an RBFCU preferred real estate agent, who can help you search smarter.

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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.

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6. Finalize your loan

Our mortgage 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.


Calculators

  • How much home can I afford?
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  • How much should I put down for a new home?
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  • How much will my mortgage payments be?
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  • Which is better for me: A fixed-rate mortgage or an adjustable-rate mortgage?
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  • Which is better for me: A 15-year or 30-year mortgage loan term?
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FAQs

  • Which loan type is better: a fixed-rate mortgage loan or an adjustable-rate mortgage (ARM) loan?
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    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.

  • Does RBFCU offer other options besides a 5/5 adjustable-rate mortgage (ARM) loan?
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    No, not at this time.

  • On a 5/5 adjustable-rate mortgage (ARM) loan, how frequently can my interest rate and payment increase?
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    An adjustable-rate mortgage (ARM) loan is designed to lock in both your interest rate and payment for a designated term. After the initial term has lapsed, your interest rate and payment change. For example, in a 3/1 ARM loan, your interest rate and payment are locked in for the first three years of your loan, then both will adjust every year following your initial term. On an RBFCU 5/5 ARM loan, your interest rate and payment are locked in for the first five years of your term, then adjust every five years after that.

  • I’ve heard that adjustable-rate mortgage (ARM) loans are risky. Is that true?
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    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 Resource Center at 210-945-3300 and speak with a mortgage loan representative.

  • How soon will someone from RBFCU contact me after I’ve submitted my mortgage application?
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    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?

Membership eligibility required. Loans subject to credit approval. Rates and terms subject to change without notice. RBFCU mortgage loans are available only on property in Texas. Origination fee program not available for short term loans, FHA or VA 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.

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