Adjustable-rate Mortgages are Built For Flexibility

Life is constantly changing-your mortgage rate should maintain. Adjustable-rate mortgages (ARMs) use the convenience of lower interest rates in advance, providing an adaptable, economical mortgage solution.

Adjustable-rate mortgages are built for versatility

Not all mortgages are produced equivalent. An ARM offers a more versatile technique when compared to conventional fixed-rate mortgages.

An ARM is ideal for short-term homeowners, purchasers anticipating income growth, investors, those who can manage danger, first-time homebuyers, and people with a strong monetary cushion.

- Initial fixed regard to either 5 years or 7 years, with payments calculated over 15 years or thirty years *

- After the initial fixed term, rate changes occur no more than once annually

- Lower introductory rate and initial regular monthly payments

- Monthly mortgage payments might decrease

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

Have a look at this video that covers the basics!

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 alternatives include a preliminary fixed regard to either 5 years or 7 years, with payments computed over 15 years or 30 years. Choose a shorter loan term to conserve thousands in interest or a longer loan term for lower monthly payments.

Mortgage loan pioneer and servicer details

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

University Credit Union's registration is NMLS # 409731, and our private begetters' 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, consumers can access details regarding mortgage loan begetters at no charge by means of www.nmlsconsumeraccess.org.

Requests for information related to or resolution of an error or mistakes in connection with a current mortgage loan must be made in writing by means of the U.S. mail to:

University Credit Union/TruHome.
Member Service Department.
9601 Legler Rd
. Lenexa, KS 66219

Mortgage payments might be sent out via U.S. mail to:

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

Contact TruHome by phone throughout service hours at:

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

Mortgage alternatives from UCU

Fixed-rate mortgages

Refinance from a variable to a fixed interest rate to delight in predictable regular monthly 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 rate of interest that adjusts with time based on the marketplace. ARMs normally have a lower initial rates of interest than fixed-rate mortgages, so an ARM is a money-saving option if you desire the usually lowest possible mortgage rate from the start. Discover more

- Who would benefit most from an ARM? Who would benefit most from an ARM? An ARM is a terrific alternative for short-term homebuyers, buyers expecting income growth, investors, those who can manage threat, novice property buyers, or individuals with a strong financial cushion. Because you will get a lower initial rate for the fixed duration, an ARM is ideal if you're preparing to offer before that duration is up.

Short-term Homebuyers: ARMs use lower preliminary costs, perfect for those planning to sell or refinance quickly.

Buyers Expecting Income Growth: ARMs can be beneficial if earnings increases considerably, balancing out potential rate increases.

Investors: ARMs can possibly increase rental income or residential or commercial property gratitude due to lower preliminary costs.

Risk-Tolerant Borrowers: ARMs use the capacity for substantial savings if rates of interest remain low or decline.

First-Time Homebuyers: ARMs can make homeownership more accessible by decreasing the preliminary monetary obstacle.

Financially Secure Borrowers: A strong financial cushion assists alleviate the risk of potential payment boosts.


To receive an ARM, you'll usually need the following:

- An excellent credit score (the specific score varies by lender).

- Proof of income to demonstrate you can manage month-to-month payments, even if the rate changes.

- A reasonable debt-to-income (DTI) ratio to reveal your ability to handle existing and brand-new financial obligation.

- A deposit (frequently at least 5-10%, depending on the loan terms).

- Documentation like income tax return, pay stubs, and banking declarations.


Getting approved for an ARM can in some cases be simpler than a fixed-rate mortgage due to the fact that lower initial rates of interest imply lower preliminary monthly payments, making your debt-to-income ratio more favorable. Also, there can be more versatile criteria for certification due to the lower introductory rate. However, lending institutions might desire to ensure you can still pay for payments if rates increase, so great credit and stable income are crucial.

An ARM often comes with a lower initial rate of interest than that of a similar fixed-rate mortgage, giving you lower month-to-month payments - a minimum of for the loan's fixed-rate period.

The numbers in an ARM structure refer to the preliminary fixed-rate period and the change period.

First number: Represents the number of years throughout which the rates of interest stays set.

- Example: In a 7/1 ARM, the rate of interest is repaired for the first 7 years.


Second number: Represents the frequency at which the interest rate can adjust after the preliminary fixed-rate .

- Example: In a 7/1 ARM, the rates of interest can adjust annually (as soon as every year) after the seven-year set period.


In simpler terms:

7/1 ARM: Fixed rate for 7 years, then adjusts annually.

5/1 ARM: Fixed rate for 5 years, then adjusts each year.


This numbering structure of an ARM assists you understand for how long you'll have a stable interest rate and how typically it can change later.

Getting an adjustable -rate mortgage at UCU is simple. Our online application portal is designed to stroll you through the process and help you send all the needed documents. Start your mortgage application today. Apply now

Choosing between an ARM and a fixed-rate mortgage depends on your financial goals and plans:

Consider an ARM if:

- You plan to sell or refinance before the adjustable period begins.

- You desire lower initial payments and can deal with prospective future rate increases.

- You anticipate your earnings to increase in the coming years.

Consider a Fixed-Rate Mortgage if:

- You prefer predictable monthly payments for the life of the loan.

- You prepare to remain in your home long-lasting.

- You desire protection from rates of interest variations.

If you're unsure, speak with a UCU expert who can help you examine your choices based upon your financial scenario.

Just how much home you can pay for depends upon several elements. Your deposit can vary from 0% to 20% or more, and your debt-to-income ratio will affect your accepted mortgage quantity. Calculate your costs and increase your homebuying understanding with our valuable suggestions and tools. Find out more

After the initial fixed period is over, your rate might get used to the market. If prevailing market rates of interest have gone down at the time your ARM resets, your month-to-month payment will also fall, or vice versa. If your rate does go up, there is always a chance to re-finance. Learn more

* UCU ARM prices based upon 1 year Constant Maturity Treasury (CMT). Rates subject to change. All loans are offered for purchase or re-finance of primary residence, second home, financial investment residential or commercial property, single family, one-to-four-unit homes, prepared system developments, condominiums and townhomes. Some restrictions may use. Loans issued based on credit review.