Life is constantly changing-your mortgage rate must maintain. Adjustable-rate mortgages (ARMs) use the convenience of lower rates of interest upfront, providing a versatile, cost-effective mortgage option.

Adjustable-rate mortgages are constructed for flexibility

Not all mortgages are developed equivalent. An ARM uses a more flexible method when compared with standard fixed-rate mortgages.

An ARM is ideal for short-term property owners, purchasers expecting income development, investors, those who can handle danger, novice property buyers, and individuals with a strong monetary cushion.

- Initial set term of either 5 years or 7 years, with payments calculated over 15 years or 30 years

- After the initial set term, rate adjustments occur no greater than when per year

- Lower initial rate and preliminary regular monthly payments

- Monthly mortgage payments may reduce

Want to find out more about ARMs and why they might be a good suitable for you?

Have a look at this video that covers the essentials!

Choose your loan term

Tailor your mortgage to your requirements with our flexible loan terms on a 5/1 ARM or 7/1 ARM. These options include an initial set regard to either 5 years or 7 years, with payments determined over 15 years or thirty years. Choose a much shorter loan term to save thousands in interest or a longer loan term for lower monthly payments.

Mortgage loan pioneer and servicer information

- Mortgage loan producer information Mortgage loan begetter information The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) needs cooperative credit union mortgage loan pioneers and their utilizing organizations, as well as employees who act as mortgage loan producers, to sign up with the Nationwide Mortgage Licensing System & Registry (NMLS), obtain a distinct identifier, and preserve their registration following the requirements of the SAFE Act.

University Credit Union's registration is NMLS # 409731, and our individual pioneers' names and registrations are as follows:

- Merisa Gates - NMLS ID # 188870.
- Estela Nagahashi - NMLS ID # 1699957.
- Miguel Olivares - NMLS ID # 2068660.
- Michelle Pacheco - NMLS ID # 662822.
- Britini Pender - NMLS ID # 694308.
- Sheri Sicka - NMLS ID # 809498.
- Elizabeth Torres - NMLS ID # 1757889.
- David L. Tuyo II - NMLS ID # 1152000.


Under the SAFE Act, customers can access information concerning mortgage loan pioneers at no charge through www.nmlsconsumeraccess.org.

Requests for information associated to or resolution of an error or mistakes in connection with a current mortgage loan should be made in writing through the U.S. mail to:

University Credit Union/TruHome. Member Service Department. 9601 Legler Rd . Lenexa, KS 66219
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Mortgage payments may be sent out via U.S. mail to:

University Credit Union/TruHome. PO Box 219958. Kansas City, MO 64121-9958

Contact TruHome by phone during business hours at:

855.699.5946. 5 am - 6 pm PST Monday-Friday, 6 am - 11 am PST Saturday

Mortgage choices from UCU

Fixed-rate mortgages

Refinance from a variable to a fixed rate of interest to delight in foreseeable month-to-month mortgage payments.

- What is a UCU adjustable-rate mortgage? What is a UCU adjustable-rate mortgage? An adjustable-rate mortgage (ARM), likewise called a variable-rate mortgage or hybrid ARM, is a mortgage with a rates of interest that changes over time based on the market. ARMs normally have a lower initial rate of interest than fixed-rate mortgages, so an ARM is a money-saving alternative if you desire the normally lowest possible mortgage rate from the start. Learn more

- Who would benefit most from an ARM? Who would benefit most from an ARM? An ARM is a terrific option for short-term homebuyers, buyers anticipating earnings development, financiers, those who can handle danger, novice homebuyers, or people with a strong monetary cushion. Because you will receive a lower initial rate for the fixed period, an ARM is ideal if you're preparing to sell before that period is up.

Short-term Homebuyers: ARMs use lower initial costs, ideal for those preparing to sell or refinance quickly.
Buyers Expecting Income Growth: ARMs can be advantageous if income rises significantly, offsetting possible rate boosts.
Investors: ARMs can possibly increase rental income or residential or commercial property gratitude due to lower initial costs.
Risk-Tolerant Borrowers: ARMs use the capacity for considerable savings if interest rates stay low or decline.
First-Time Homebuyers: ARMs can make more accessible by decreasing the preliminary monetary difficulty.
Financially Secure Borrowers: A strong monetary cushion helps mitigate the threat of possible payment increases.
To get approved for an ARM, you'll usually need the following:

- A great credit score (the specific score varies by lender).
- Proof of income to show you can handle regular monthly payments, even if the rate changes.
- A sensible debt-to-income (DTI) ratio to reveal your capability to handle existing and brand-new debt.
- A down payment (frequently a minimum of 5-10%, depending on the loan terms).
- Documentation like income tax return, pay stubs, and banking declarations.
Receiving an ARM can often be easier than a fixed-rate mortgage because lower preliminary rate of interest suggest lower initial regular monthly payments, making your debt-to-income ratio more favorable. Also, there can be more flexible criteria for certification due to the lower introductory rate. However, lenders may desire to guarantee you can still manage payments if rates increase, so great credit and stable income are essential.
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An ARM typically includes a lower initial rate of interest than that of an equivalent fixed-rate mortgage, giving you lower regular monthly payments - at least for the loan's fixed-rate duration.

The numbers in an ARM structure describe the initial fixed-rate duration and the change period.

First number: Represents the number of years during which the rates of interest remains fixed.

- Example: In a 7/1 ARM, the rates of interest is fixed for the very first 7 years.
Second number: Represents the frequency at which the interest rate can adjust after the preliminary fixed-rate duration.

- Example: In a 7/1 ARM, the rates of interest can change each year (once every year) after the seven-year set duration.
In easier terms:

7/1 ARM: Fixed rate for 7 years, then adjusts annually.
5/1 ARM: Fixed rate for 5 years, then adjusts every year.
This numbering structure of an ARM helps you understand how long you'll have a steady rates of interest and how frequently it can change later.

Looking for an adjustable -rate mortgage at UCU is easy. Our online application website is designed to walk you through the procedure and assist you send all the needed documents. Start your mortgage application today. Apply now

Choosing between an ARM and a fixed-rate mortgage depends upon your monetary objectives and plans:

Consider an ARM if:

- You plan to sell or refinance before the adjustable period begins.
- You want lower preliminary payments and can deal with possible future rate increases.
- You anticipate your income to increase in the coming years.


Consider a Fixed-Rate Mortgage if:

- You choose foreseeable monthly payments for the life of the loan.
- You plan to stay in your home long-lasting.
- You want defense from interest rate changes.


If you're uncertain, speak to a UCU expert who can assist you evaluate your choices based on your financial scenario.

How much home you can pay for depends upon numerous aspects. Your down payment can vary from 0% to 20% or more, and your debt-to-income ratio will impact your accepted mortgage quantity. Calculate your costs and increase your homebuying understanding with our valuable pointers and tools. Find out more

After the initial set period is over, your rate may get used to the market. If prevailing market rates of interest have gone down at the time your ARM resets, your monthly payment will likewise fall, or vice versa. If your rate does go up, there is constantly a chance to refinance. Learn more

UCU ARM prices based on 1 year Constant Maturity Treasury (CMT). Rates subject to alter. All loans are readily available for purchase or refinance of main residence, 2nd home, investment residential or commercial property, single household, one-to-four-unit homes, planned system developments, condos and townhouses. Some constraints may apply. Loans issued subject to credit review.