What is an Adjustable-Rate Mortgage (ARM) loan?
Adjustable-rate mortgages (ARMs) offer interest rates that are fixed for an initial period of 5, 7 or 10 years. Rates are then adjusted based on an index, plus a margin. Interest rates during the initial term are typically low, resulting in lower monthly payments.
ARMs are commonly designated as follows:
The number of years during which the interest rate is fixed
The interval at which rates are adjusted after the initial period
For example, a 5/6 ARM would mean that the loan's first five years are at a fixed rate, and the rate is readjusted every six months thereafter.
Types of ARM Loans Offered by Teachers
5-Year ARM. The 5/6 adjustable-rate mortgage
7-Year ARM. The 7/6 adjustable-rate mortgage
10-Year ARM. The 10/6 adjustable-rate mortgage
Why Choose an Adjustable-Rate Mortgage
You’re looking for a lower monthly payment for the initial years of your mortgage.
You’re purchasing a house as a short-term investment and plan to sell within a few years.
You’re expecting interest rates to decrease in the coming years.
Apply for an ARM Loan
Visit the Teachers Mortgage Center to check rates and receive a customized quote
Schedule an Appointment with one of our expert mortgage team members today, or call us for consultation.
Apply for an ARM Loan.
Resources and Tools
Mortgage Calculators & FAQs - Learn More
First Time Homebuyers Workshop - Read More
All rates are subject to change without notice. Membership at Teachers is required by opening a minimum $1.00 Regular Savings account. Applicants must meet the loan program requirements, loan to value restrictions may apply. All loans are subject to credit and underwriting approval, certain fees and restrictions may apply. Teachers Federal Credit Union does not offer residential mortgage loans in Puerto Rico. For an updated list of states where Teachers Federal Credit Union mortgages are offered please visit our website.