How does An Adjustable-rate Mortgage Work?

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

utilize 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 Charge 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 offers tips 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 fees, members conserve more with an SCCU Visa® & reg; charge card.

- Digital Banking.
- Electronic 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 Credit 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.
- Electronic 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 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 give out your info. SCCU will NEVER call, text, or email you to request sensitive info, such as your Online Banking passwords or account/card numbers. Discover more.

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

Adjustable-Rate Mortgage

Make the most of lower initial payments and begin constructing equity

SCCU offers a range of Adjustable-Rate Mortgages (ARMs) to help you start constructing equity while taking pleasure in a lower rate and payment in advance. Since ARM rates and payments can go lower or higher in the future, you'll require to fully comprehend how they work. We'll work with you to determine what option is best for your scenario. Our knowledgeable mortgage officers can describe the information so that you'll feel confident with your ARM.22

Product Features

- Approximately 95% Financing16

- More Flexible Terms, with Lower Initial 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 Rates Of Interest Guarantee18

Approximately 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 (+ Pros and Cons)

How do I get an adjustable-rate mortgage with SCCU?

You might apply online or reach out to us.

An adjustable-rate mortgage-also referred to as an ARM or variable rate mortgage-is a mortgage that has a rates of interest that can go up or down at specified time periods. Typically, an ARM starts with a rate of interest that's lower than the rate of interest on a comparable fixed-rate mortgage for a specified time duration. When that time duration ends, the rate of interest might alter, which may alter the quantity of your monthly payment.

At SCCU, we provide a range of ARMs to suit our members' needs, including options that use rate change after 5, 7, or ten years22. For instance, a 5/1 ARM has a set interest rate for the first five years of the loan. After the initial five-year period, the interest rate and payment may change every 12 months. The rates of interest can't increase or decrease more than 2 percent at one adjustment and can't increase more than 5 percent over the life of the loan. To get more information, please reach out to us.

What are the downsides of an ARM loan?

Adjustable-rate mortgages (ARMs) are not for everybody, however fortunately is that debtors have a large range of mortgage types from which to choose. If you are considering an ARM loan, nevertheless, it's 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 an initial period but might increase afterwards.
- Some adjustable-rate mortgages consist of prepayment charges, so you will want to ask prospective lenders for a clear answer on this.
- Some adjustable-rate mortgages will have a balloon payment at maturity, which could be a significant amount of money.

What are adjustable-rate mortgage change caps?

Adjustable-rate mortgages have caps, or limitations, on how much the interest rate can increase from one adjustment date to the next. These modification caps protect borrowers from severe modifications in rates. Lenders might have three kinds of caps:

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

What is an ARM loan change period?

Typically, the regular monthly payment and interest rates on adjustable-rate mortgages alter at defined intervals, such as each month or year or every 3, 5, or 7 years. The length of time in between each interval-at which time the rates of interest can be adjusted-is referred to as the change period.

What questions should debtors inquire about adjustable-rate mortgages?

Securing a mortgage of any type is typically one of the biggest financial deals the majority of people will make, so putting in the time to ask prospective lenders the ideal concerns is important. To make sure you understand the regards to an adjustable-rate mortgage, ask loan providers these concerns:

- What is the initial interest rate and the length of time does it apply?
- How frequently will my rate of interest be changed?
- What is the index that the ARM rate is based on?
- What is the lender's margin (an extra amount that lenders contribute to the index rate)?
- How high or low could the rate of interest go?
- What is the cap on the payment?
- Exists a charge 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 preliminary monthly payment consist of taxes and insurance coverage?

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

Each type of mortgage has its advantages and disadvantages, and ultimately, the mortgage that's better is the one that's finest for you. Here are a few things to think about when weighing your home funding alternatives: Adjustable-rate mortgages are initially based upon short-term rate of interest that are typically lower than rate of interest on fixed-rate mortgage. That suggests ARM rates may initially provide lower month-to-month payments and might offer you the opportunity to acquire a more expensive house. But, after the initial rate duration, your rate could change, affecting your regular monthly payment. There are also more kinds of variable-rate loans, so you might have more choices when trying to find home financing that meets your individual needs.

The most essential benefits of fixed-rate mortgages include knowing precisely what your monthly home payments will be over time and that you will not have any undesirable rate of interest surprises in the future. Fixed-rate mortgages are likewise simpler and much easier to understand.

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

Who should consider an adjustable-rate mortgage?

ARM loans may be the right option for your loaning needs if:

- Your income is presently adequate or is most likely to increase enough for you to be able to easily make higher monthly payments should your ARM rate of interest increase at any change period.
- You prepare to remain in your home for simply a couple of years, so the possibility of paying greater monthly payments in years to come is not an issue.

- Yes
- No

MORTGAGE: Mortgage loans are come from by Space Coast Credit Union, and undergo credit approval, confirmation and collateral examination. Programs, offers, rates, terms, and conditions undergo change or cancel without notice. Certain constraints apply.

These mortgage loan programs constitute first mortgage liens protected by the home and residential or commercial property. Your down payment is figured out by the Loan-to-Value ratio. (90% LTV = 10% down payment) Loans exceeding 80% of the evaluated value of the home need personal mortgage insurance coverage. Member responsible for any funds required for closing costs 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.
- Contact 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 and Conditions.
- Privacy Policy.
- Sitemap.
-.
SCCU Routing Number: 263177903.
NMLS #: 403370

Space Coast Credit Union subscription is open to loved ones of current members and all who work or reside 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 = Interest Rate. ^ APY = Annual Percentage Yield.

Your Privacy

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