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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 3.625% 4.879% $2,850.32 $171,019.20
Year 6-10 5.5% $3,449.98 $206,998.80
5/5 ARM Total Payment Years 1-10
$378,018.00

30 Year Fixed Rate* APR* Monthly Payment* Total Payment
Year 1-5 4.875% 4.950% $3,307.55 $198,453.00
Year 6-10 4.875% $3,307.55 $198,453.00
30 Year Fixed Total Payment Years 1-10
$396,906.00

5/5 ARM Total Savings: $18,888.00 (Years 1-10)

In this example, you would save $18,888.00 in the first 10 years with a 5/5 ARM compared to a traditional 30 year fixed mortgage.


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

* Rate is variable and can increase every 5 years by no more than 2 percentage points over the previous rate at the time of each adjustment and by no more than 5% of the initial start rate over the life of the loan. Adjustment payment shown for years 6-10 is based on the current index as of July 9, 2018 plus margin (fully indexed rate). The actual index rate at the time of adjustment may be higher.