- Future interest rate changes will be determined based on the five-year Constant Maturity Treasury (CMT) yield.
- Origination fees (what SECU charges for processing the mortgage loan) are assessed for 1% of the loan amount, capped at $2,500.
- Manufactured homes can typically serve as collateral but must be the primary residence of the borrower. Terms are limited to a maximum of 20 years.
- Loan-to-value (LTV) is the ratio comparing the amount of your mortgage with the appraised value of the property.
- For purchases, maximum financing and loan-to-value financing tier are determined based on the lesser of the sales price or appraised value of the property securing the loan. Member is responsible for appraisal costs.
- Up to 100% financing available for purchases and no cash-out refinances of single-family primary residences. Up to 90% financing available for cash-out refinances of primary residences. Cash-out is defined as any funds that exceed the balance owed on the first mortgage being paid off, plus closing costs. Greater than 90% financing is relegated to a maximum loan of $500,000. Additional restrictions may apply. Up to 90% financing for purchases and no cash-out refinances of secondary residences; further limited to 75% loan-to-value for cash-out refinances. Up to 85% financing available for the purchase of a one-unit investment property or a no cash-out refinance of a one-unit investment property; further limited to 75% loan-to-value for cash-out refinances. Up to 75% financing available for the purchase of a two- to four-unit investment property or a no cash-out refinance of a two- to four-unit investment property; further limited to 70% loan-to-value for cash-out refinances. Each member may finance up to six properties with SECU, but only one may be financed at greater than 90% LTV.
- APR = Annual Percentage Rate. APR is your cost over the loan term expressed as a rate. Stated APR based on a purchase transaction with a loan amount of $250,000 for a maximum term allowed for each loan program.
Be financially prepped for an ARM
Considering a 5-Year ARM? This type of mortgage comes with an interest rate subject to change every five years throughout the life of the loan. Common situations for choosing an ARM include:
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Capped rate changes
The interest rate can only be adjusted every five years with a maximum term of 30 years.1 The rate cap is 2% every five years or 6% over your initial interest rate during the life of the loan.
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No private mortgage insurance (PMI) needed
PMI is not required for SECU ARM Loans.
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Low fees
Our loans do not require application or credit report fees.2
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Lending footprint
Purchase or refinance primary residences, second homes, and investment properties in North Carolina, South Carolina, Virginia, Georgia, and Tennessee.
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Tax and insurance included
Your monthly payment includes principal, interest, and an estimated amount to cover annual property taxes and applicable insurance premiums.
Getting pre-qualified can help you:
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Understand the home loan amount you can afford.
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Shop with confidence knowing what range you can afford.
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Demonstrate your creditworthiness in your offer.
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Reduce timelines and potentially close on your dream home faster.
ARM rates
The rates shown are based on a $250,000 loan up to the maximum term length for a single family home.3 Payments represent principal and interest only; taxes and insurance are not included. Therefore, the actual payment obligation will be greater.
| Loan type | Loan-to-value4,5,6 | Rates (APR7) as low as | Monthly payment |
|---|---|---|---|
| 5-Year ARM† | 80% or less | 5.125% (5.389% APR) | $1,361.22 (years 1-5) $1,395.14 (years 6-30) |
| 5-Year ARM† | 80.01 - 90% | 5.450% (5.824% APR) | $1,411.64 (years 1-5) $1,470.72 (years 6-30) |
| 5-Year ARM† | 90.01 - 100% | 5.775% (6.256% APR) | $1,462.90 (years 1-5) $1,548.27 (years 6-30) |
| First-Time Homebuyers (5-Year ARM†) | 100% | 5.775% (6.256% APR) | $1,462.90 (years 1-5) $1,548.27 (years 6-30) |
†Maximum term of 30 years
Frequently asked questions about Adjustable Rate Mortgages
Adjustable rate mortgages, also known as variable-rate mortgages, have interest rates that may change periodically based on the corresponding financial index. Fixed rate mortgages have an interest rate that remains the same for the life of the loan.
You can’t calculate in advance exactly how much total interest you will pay since the interest rate may change over the life of the loan. However, you can find an estimate by using our mortgage payment calculator.
Closing costs are fees you pay when finalizing a home-buying or refinancing transaction. SECU assesses an origination fee based on your loan amount, which is capped at $2,500. The remainder of the charges, such as title insurance, appraisal fees, attorney fees, homeowners insurance, and property taxes, are paid to third parties. The loan estimate provided at the time of application estimates what closing costs you can expect.