How does An Adjustable-rate Mortgage Work?

bloglines.com
What is a Credit Union? - Meet Your Watchdog! - Newsletters - Community - Hero Loans - Events - Help - Current Fraud Alerts - Frequently Asked Questions - Check Loan/Account Application

Accessible Menu - Main Menu - Checking & Savings - Mortgages - Loans - Credit Cards - Services

- Compare Checking Accounts - Free Checking - Interest Checking - Student Checking - Health Savings Checking

- Compare Savings Accounts - Regular Savings - Money Market - My Way Savings - SCCU Savings Cents - Youth Savings - Christmas Club Savings

- Zelle ®- Certificates of Deposit (CDs)

- Debit Card Services

- IRA Options - Individual Retirement Accounts (IRAs). - IRA CDs

- Switch Kit

- Existing Account Help. - Order Checks

SCCU Routing Number: 263177903

use your SCCU Visa® & reg; Debit

Card. - Mortgage Products. - No Deposit Mortgage. - Hero Loans.- No Closing Costs Mortgage.- Conventional Fixed-Rate Mortgages. - Construction-to-Permanent Loans. - FHA Home Loans .- VA Mortgage.

- Jumbo Home Loans. - Condo Loans. -Adjustable-Rate Mortgage.- Lot Loans -Home Equity Loans.- Home Equity Credit Line.- Fixed-Rate Home Equity Loan( second Mortgage )- Mortgage Refinance- Home Buying Center -Estimate My

Mortgage Payment -Express Mortgage Originators - Existing Mortgage Help. - Escrow Assistance. -Filing a Home Insurance Claim.- HELOC Credit Card Account Access- Check Mortgage Application Status

- Check Home Equity

Application Status All New 10/1 ARM- Auto/Vehicle Loans.- Auto Loan Pre-Approval. -Auto Loan Refinance- Recreational Vehicles.- Boat and RV Loans

. -Motorcycle & Scooter Loans - Personal Loans. - Share Loans

& CD Secured Loans.- Signature Personal Loans- Auto Buying Center -Request More Product Info- Existing Auto Loan Help.
- Skip Your Auto Payment- Rates. -Hero Loans Our Car Buying Center uses ideas to make your experience as basic as
possible. - Credit Cards. - Visa Signature ®. - Visa ® Platinum . -Visa ® Low Rate

. -Visa ® Secured.- Visa ® Student- Report a Lost or Stolen Card- Manage Cards -Existing Visa ® Credit
Card Help -Travel Notice

& Tips -TCM Bank MasterCard Access- Rates

- Check Application Status

With low variable rates, digital wallet payment alternatives, and no yearly charges, members save more with an SCCU Visa® & reg; credit card.

- Digital Banking. - Online Banking. - Mobile Banking. - Digital Wallet. - Mobile Wallet Loan Payments. - Zelle ®- Insurance. - Auto Insurance & Extended Warranty. - TruStage Auto & Home Insurance. - Credit Life & Disability

- Business Services

- Financial Wellness. - Fraud Prevention Center. - Financial Calculators. - Articles

- Member Discounts

with Mobile Deposit in the SCCU Mobile app.

- Checking & Savings - Compare Checking Accounts. - Free Checking. - Interest Checking. - Student Checking. - Health Savings Checking. - Compare Savings Accounts. - Regular Savings. - Money Market. - My Way Savings. - SCCU Savings Cents. - Youth Savings. - Christmas Club Savings. - Zelle ® . -Certificates of Deposit (CDs). - Debit Card Services. - IRA Options. - Individual Retirement Accounts (IRAs). - IRA CDs. - Switch Kit. - Rates. - Existing Account Help. - Order Checks. - Check Application Status

- Mortgage Products. - No Down Payment Mortgage. - Hero Loans. - No Closing Costs Mortgage. - Conventional Fixed-Rate Mortgages. - Construction-to-Permanent Loans. - FHA Home Loans. - VA Mortgage. - Jumbo Home Loans. - Condo Loans. - Adjustable-Rate Mortgage. - Lot Loans. - Home Equity Loans. - Home Equity Credit Line. - Fixed-Rate Home Equity Loan (second Mortgage). - Mortgage Refinance. - Home Buying Center. - Estimate My Mortgage Payment. - Express Mortgage Originators. - Existing Mortgage Help. - Escrow Assistance. - Filing a Home Insurance Claim. - HELOC Charge Card Account Access. - Rates. - Check Mortgage Application Status. - Check Home Equity Application Status

- Auto/Vehicle Loans. - Auto Loan Pre-Approval. - Auto Loan Refinance. - Recreational Vehicles. - Boat and RV Loans. - Motorcycle & Scooter Loans. - Personal Loans. - Share Loans & CD Secured Loans. - Signature Personal Loans. - Auto Buying Center. - Request More Product Info. - Existing Auto Loan Help. - Skip Your Auto Payment. - Rates. - Hero Loans. - Check Application Status

- Credit Cards. - Visa Signature ®. - Visa ® Platinum. - Visa ® Low Rate. - Visa ® Secured. - Visa ® Student. -Report a Lost or Stolen Card. - Manage Cards.- Existing Visa ® Charge Card Help. - Travel Notice & Tips. - TCM Bank MasterCard Access. - Rates. - Check Application Status

- Digital Banking. - Online Banking. - Mobile Banking. - Digital Wallet. - Mobile Wallet Loan Payments. - Zelle ®. - Insurance. - Auto Insurance & Extended Warranty. - TruStage Auto & Home Insurance. - Credit Life & Disability. - Business Services. - Financial Wellness. - Fraud Prevention Center. - Financial Calculators. - Articles. - Member Discounts

- Schedule Appointment. - Locations. - Financial Wellness. - Careers. - About Us - Organization - SCCU History. - What is a Cooperative credit union? - Meet Your Watchdog! - Newsletters

- Community - Hero Loans. - Events

- Help - Current Fraud Alerts. - Frequently Asked Questions. - Check Loan/Account Application

- By Phone:. Brevard: 321-752-2222. Broward: 954-704-5000. Miami-Dade: 305-882-5000. All Other Areas: 800-447-7228

Member Service Center. Mon - Fri: 8am to 8pm. Sat: 9am to 5pm

Express Services. Mon - Fri: 8am to 7pm. Sat: 9am to 2pm

- Report a Lost or Stolen Card. - Additional Contact Information. - Check Loan/Account Application

Scam Alert! Don't provide your info. SCCU will NEVER call, text, or email you to demand sensitive info, such as your Electronic banking passwords or account/card numbers. Find out more.

1. Personal. 2. Mortgage Products. 3. Adjustable-Rate Mortgage

Adjustable-Rate Mortgage

Make the most of lower preliminary payments and start building equity

SCCU provides a range of Adjustable-Rate Mortgages (ARMs) to help you start developing equity while delighting in a lower rate and payment up front. Since ARM rates and payments can go lower or higher in the future, you'll require to completely understand how they work. We'll work with you to determine what choice is best for your circumstance. Our skilled mortgage officers can explain the information so that you'll feel positive with your ARM.22

Product Features

- Up to 95% Financing16

- More Flexible Terms, with Interest & Payment

- Alternatives that Offer Adjustment after 5, 7, or 10 years22

- Ability to Convert to a Fixed Rate Loan

- Affordable Housing Program Available

- Fast Pre-qualification Decisions, Online or Over the Phone. - No Intangible Tax21. - SCCU Member Service for the Life of the Loan. - SCCU Rate Of Interest Guarantee18

Up to thirty years

None

$ 1,100 plus.25% of loan quantity

No Closing Costs; Jumbo; Construction

- Calculators. - Home Buying Center. - Other Mortgage Options. - SCCU Owners' Manual. - Mobile Banking. - Electronic banking. - How Adjustable-Rate Mortgages Work (+ Benefits And Drawbacks)

How do I make an application for an adjustable-rate mortgage with SCCU?

You might use online or connect to us.

An adjustable-rate mortgage-also described as an ARM or variable rate mortgage-is a mortgage that has a rate of interest that can go up or down at defined time intervals. Typically, an ARM begins with a rate of interest that's lower than the interest rate on a comparable fixed-rate mortgage for a specified time period. When that time period ends, the interest rate might change, which might alter the quantity of your month-to-month payment.

At SCCU, we provide a variety of ARMs to suit our members' needs, including alternatives that offer rate change after 5, 7, or 10 years22. For instance, a 5/1 ARM has a fixed interest rate for the very first five years of the loan. After the initial five-year period, the rates of interest and payment might change every 12 months. The rates of interest can't increase or decrease more than 2 percent at one modification and can't increase more than 5 percent over the life of the loan. To read more, please reach out to us.

What are the disadvantages of an ARM loan?

Adjustable-rate mortgages (ARMs) are not for everybody, however the great news is that borrowers have a large range of mortgage types from which to select. If you are considering an ARM loan, however, it is essential to understand a few of the potential disadvantages:

- Adjustable-rate mortgage rates can and are likely to change over the life of the loan. An ARM rate may be low for a preliminary period but could go up afterwards. - Some adjustable-rate mortgages consist of prepayment charges, so you will wish to ask potential lending institutions for a clear response on this. - Some adjustable-rate mortgages will have a balloon payment at maturity, which might be a significant amount of cash.

What are adjustable-rate mortgage adjustment caps?

Adjustable-rate mortgages have caps, or limits, on just how much the rate of interest can increase from one adjustment date to the next. These adjustment caps safeguard borrowers from severe changes in rates. Lenders might have three types of caps:

- The initial change that occurs after the preliminary fixed-rate term is reached - Subsequent change caps that manage how much the rate can increase at one time in adjustment periods that follow the very first modification - A cap on the change for the life of the loan, or what the total interest rate increase will ever be

What is an ARM loan modification period?

Typically, the monthly payment and rate of interest on adjustable-rate mortgages change at specified periods, such as monthly or year or every 3, 5, or 7 years. The length of time between each interval-at which time the rate of interest can be adjusted-is known as the change period.

What questions should borrowers ask about adjustable-rate mortgages?

Securing a mortgage of any type is frequently among the biggest financial transactions the majority of individuals will make, so making the effort to ask prospective lending institutions the ideal concerns is very important. To ensure you comprehend the terms of an adjustable-rate mortgage, ask lending institutions these concerns:

- What is the initial interest rate and how long does it use? - How often will my rates of interest be adjusted? - What is the index that the ARM rate is based on? - What is the loan provider's margin (an extra quantity that loan providers add to the index rate)? - How high or low could the interest rate go? - What is the cap on the payment? - Exists a penalty for paying off the loan early? - If there is a balloon payment, when would it be due and how much would it be? - Does the initial month-to-month payment include taxes and insurance coverage?

Which is better: A set- or adjustable-rate mortgage?

Each kind of mortgage has its advantages and disadvantages, and eventually, the mortgage that's much better is the one that's finest for you. Here are a couple of things to consider when weighing your home funding alternatives: Adjustable-rate mortgages are initially based upon short-term rate of interest that are typically lower than interest rates on fixed-rate mortgage. That implies ARM rates may initially provide lower month-to-month payments and might offer you the chance to acquire a more expensive home. But, after the preliminary rate duration, your rate could change, affecting your month-to-month payment. There are also more kinds of variable-rate loans, so you may have more options when searching for home financing that satisfies your specific needs.

The most important benefits of fixed-rate mortgages include understanding precisely what your monthly house payments will be over time and that you will not have any unpleasant interest rate surprises in the future. Fixed-rate mortgages are also easier and simpler to comprehend.

Contact our Express Services group to read more about all of the mortgage alternatives SCCU offers our members.

Who should think about an adjustable-rate mortgage?

ARM loans may be the ideal option for your borrowing requires if:

- Your income is currently sufficient or is likely to increase enough for you to be able to easily make higher monthly payments need to your ARM interest rate increase at any change duration. - You plan to remain in your home for simply a few years, so the possibility of paying higher month-to-month payments in years to come is not a concern.

- Yes - No

MORTGAGE: Mortgage loans are originated by Space Coast Cooperative Credit Union, and undergo credit approval, confirmation and security evaluation. Programs, deals, rates, terms, and conditions undergo change or cancel without notification. Certain restrictions apply.

These mortgage loan programs constitute very first mortgage liens secured by the home and residential or commercial property. Your deposit is identified by the Loan-to-Value ratio. (90% LTV = 10% deposit) Loans surpassing 80% of the appraised value of the home need private mortgage insurance. Member accountable for any funds needed for closing expenses and pre-paid escrow.

- Compare Checking Accounts - Compare Savings Accounts - Zelle ® . -Certificates of Deposit (CDs). - Debit Card Services. - IRA Options. - Switch Kit. - Rates. - Existing Account Help. - Check Application Status

- Mortgage Products. - Home Equity Loans. - Mortgage Refinance. - Home Buying Center. - Estimate My Mortgage Payment. - Express Mortgage Originators. - Existing Mortgage Help. - Rates. - Check Mortgage Application Status. - Check Home Equity Application Status

- Auto/Vehicle Loans. - Recreational Vehicles. - Personal Loans. - Auto Buying Center. - Request More Product Info. - Existing Auto Loan Help. - Rates. - Check Application Status

- Credit Cards. - Report a Lost or Stolen Card. - Manage Cards. - Existing Visa ® Charge Card Help. - Travel Notice & Tips. - TCM Bank MasterCard Access. - Rates. - Check Application Status

- Digital Banking. - Insurance. - Business Services. - Financial Wellness. - Member Discounts

- Schedule Appointment. - Locations. - Financial Wellness. - Careers. - Connect with Us!

- Facebook. - Instagram. - LinkedIn

- Brevard: 321-752-2222. - Broward: 954-704-5000. - Miami-Dade: 305-882-5000. - All Other Areas: 800-447-7228

- Fees, Forms, and Disclosures. - Terms. - Privacy Policy. - Sitemap. -. SCCU Routing Number: 263177903. NMLS #: 403370

Space Coast Cooperative credit union membership is open to family members of present members and all who work or live in Alachua, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Duval, Flagler, Hernando, Hillsborough, Indian River, Lake, Lee, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, or Volusia Counties in Florida.

* APR = Annual Percentage Rate. ^ APY = Annual Percentage Yield.

Space Coast Credit Union (SCCU) © 2025

Your Privacy

This site utilizes cookies to improve user experience. To discover more about how we utilize cookies, and your alternatives for opting out of the collection of cookies, please visit our Website Terms & Conditions. By continuing to utilize this site, you accept the terms of our Online Privacy Policy and our use of cookies.