5/5 Adjustable Rate Mortgage

County Federal has a mortgage that offers the best of both worlds — the affordable, low rate of an adjustable rate loan, and the peace-of-mind that comes with a fixed-rate conventional loan.

This is a great option for homeowners expecting to be in their homes less than 15 years. Even with today’s low mortgage rates on 30 and 15-year fixed rate loans, the initial interest rate on a 5/5 ARM is even lower.

The example below illustrates your savings and how quickly you can build additional equity with a 5/5 Adjustable Rate Mortgage vs a 30-year fixed mortgage. This example assumes a loan amount of $600,000 in the first 5 years of the loan.

The 5/5 Adjustable Rate Mortgage Offers:

  • A LOW annual percentage rate for the first five years – currently 3.26% APR*
  • Rate adjustments that only occur once every five years of the 30-year term
  • Maximum increase of just 2% per rate adjustment (rate tied to the LIBOR index) with a lifetime maximum adjustment of 5%

To find out if the 5/5 ARM is right for you, contact one of our friendly , knowledgeable Real Estate Specialist at (408) 282-0742. 

Learn more about County Federal real estate loans.

*APR = Annual Percentage Rate. Initial offering of 3.25% loan rate for loan amounts up to $636,150 and 3.50% loan rate for loan amounts $636,151 and over Actual APR will depend on factors the Credit Union may lawfully consider such as points, loan-to-value ratio and credit history. Specific disclosures will be provided on application. Pay $4.35 per month per $1,000.00 borrowed at 3.260% APR for 30 years for loan amounts up to $636,150; Pay $4.49 per month per $1,000.00 borrowed at 3.510% APR for 30 years for loan amounts $636,151 and over. Quoted monthly payments do not include impounds for taxes, property insurance, or mortgage insurance. California properties only. Rate is variable and can increase no more than 2 percentage points every 5 years with a lifetime maximum adjustment of 5%. Rates over the term of the loan will not fall below the initial floor rate. Variable rate is based on the 1-year LIBOR rate. LIBOR rate changes are shown in the Wall Street Journal. Adjustable Rate Mortgage (ARM) rates are subject to change during the term of the loan. All loan applications subject to approval. Call (408) 282-0742 for current APRs and payment samples. Rates and terms are accurate as of JUNE 1, 2017 and are subject to change without notice.