Adjustable Rate Mortgages

What is an adjustable rate mortgage?
An adjustable rate mortgage, or ARM, has an interest rate that changes over the life of the loan based on the performance of a variable index plus a margin. Interest rate adjustments are made according to a schedule that is provided at loan closing. With each change, the borrower's monthly payment may go up or down. These periodic interest rate adjustments are limited by adjustment caps. When viewing our ARM rates, click the product name in the results table to see which index, margin and adjustment caps apply to the loans you are considering.

Why choose an adjustable rate mortgage loan?

• Lower initial interest rate than fixed rate mortgages
• Lower initial monthly mortgage payments than fixed rate mortgages
• Greater home buying power than fixed rate mortgages
• You don't expect to be in the home more than 10 years

Coastal Federal Credit Union offers a variety of adjustable rate mortgage programs:

• One-year, three-year, five-year and seven-year ARMs are available
• Rates may be based on the one-year Constant Maturity Treasury, the one-year LIBOR, the six-month LIBOR or the one-month LIBOR
• After the initial period of the loan, rates are subject to regular adjustments based on the value of the index (CMT) plus a margin
• Adjustable rate mortgages are offered up to $750,000

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