Home » Personal » Loans » Mortgage » 5/5 ARM

The 5/5 adjustable rate mortgage (ARM) combines the lower payments of a traditional ARM with extremely low adjustment caps to provide far greater rate security.

 
This is a “must consider” option for all homeowners – especially those expecting to be in their homes less than 15 years.
  • Enjoy an incredibly low rate and payment for years 1-5.
  • Rate will adjust a maximum of only 2% in year 6 and will remain through year 10.
  • Rate will adjust just once every 5 years thereafter and no more than 2% at a time.
  • Over the life of the loan, the maximum adjustment is capped at 5% above the start rate.
  • Available for loans up to $1.5 million.
  • Low Down Payment Options Available: 5% down on loans up to $679,650 or 10% down on loans up to $850,000.

Here is one example of potentially huge savings on a $625,000 loan with a 5/5 ARM vs. a 30-Year Fixed Mortgage (assuming the maximum possible rate adjustment of 2% in year 6*)

5/5 ARM Rate* APR* Monthly Payment* Total Payment
Year 1-5 2.875% 4.404% $2,593.08 $155,584.68
Year 6-10 4.875% $3,200.66 $192,039.60
5/5 ARM Total Payment Years 1-10
$347,624.28

30 year fixed Rate* APR* Monthly Payment* Total Payment
Year 1-5 4.625% 4.662% $3,213.37 $192,802.20
Year 6-10 4.625% 4.662%
$3,213.37 $192,802.20
30 Year Fixed Total Payment Years 1-10
$385,604.40

5/5 ARM Total Savings: $37,980.12 (Years 1-10)

In this example, you would save $37,980.12 in the first 10 years with a 5/5 ARM compared to a traditional 30 year fixed mortgage.


    Check Today's Rates

Is the 5/5 ARM right for you?  Call 855.203.4747 to speak to an NIHFCU mortgage specialist today.