Adjustable Loan Rates as Low As
APR Effective 5/31/2023*
7.053
%
APR
10 Year ARM (10yr/6mo)
Adjustable after year 10
6.694
%
APR
5 Year ARM (5yr/5yr)
Adjusts every 5 years
7.139
%
APR
7 Year ARM (7yr/6mo)
Adjustable after year 7
*See important information about rates, fees and other costs
Adjustable-rate loans (ARMs) give you the advantage of increased buying power if you only plan on staying in your house a few years. An ARM may allow you to qualify for a larger home loan amount and get more house for your money, plus you'll have lower payments during the first years of your loan.
ARMs may be the best choice for you if:
- You can potentially get more for your money.
- You want to keep payments lower during the early years of your loan.
- You plan to move within 10 years.
- You plan to pay off your mortgage within 10 years.
- You expect your income to increase significantly in the coming years.
BECU Mortgage Center
Check rates, research loan options and apply or log in to your existing loan application. Visit the Mortgage CenterNo Origination Fee
To reduce closing costs, BECU has no origination fee on fixed-rate or adjustable-rate mortgage home loans for purchase and refinance transactions.
Use this calculator to figure out if a fixed or adjustable rate home loan is best for you
Now let's take a look at your options:
| Why Choose This | Pros | Cons | |
|---|---|---|---|
| Short Term | If you plan on staying in your home a short period of time. |
Initial fixed interest rate for seven full years; rate adjusts annually thereafter. |
Interest rate can rise above the current fixed rate over time. |
| Longer Term | If you want a longer initial payment longer than 5 years. |
|
Riskier if you don't expect your income to increase over the initial seven year fixed rate period. |
| Adjustable-Rate Mortgage Length | Why Choose This | Pros | Cons | |
|---|---|---|---|---|
| 3 Year ARM (3yr/6mo) | Initial fixed interest rate for just three years; rate adjusts every 6 months thereafter. |
You plan to stay in your home a short period of time. |
Typically lowest interest rate of all the loan options. |
Riskier if you don't expect your income to increase over the initial ARM period to cover the potential change in monthly payment. |
| 5 Year ARM (5yr/6mo) | Initial fixed interest rate for only five years; rate adjusts every 6 months thereafter. |
You want increased buying power on your loan, yet more time than 3 years at a fixed rate. |
Allows for higher loan amount and enhanced buying power. |
Five years can pass quickly and your income may not suffice to cover potentially increasing rates. |
| 7 Year ARM (7yr/6mo) | Initial fixed interest rate for seven full years; rate adjusts every 6 months thereafter. |
You want a lower rate but the reassurance of a fixed rate of at least 7 years. |
The 5- and 7-year ARM terms are often chosen as ideal terms for selecting higher loan amounts with enhanced buying power. |
A lot can change in seven years, and your budget may be unprepared for the potential rate increase. |
| 10 Year ARM (10yr/6mo) | Initial fixed interest rate for an entire decade; rate adjusts every 6 months thereafter. |
You plan on your income rising in the 10-year period, and want to keep your payments lower in the meantime. |
You have a 10-year financial plan and use the lower rate to meet your budgeting needs. |
Interest rates can rise above the current fixed rates over time, not meeting your needs. |
| 5/5 Year ARM (5yr/5yr) | Initial fixed interest rate for five years; rate adjusts every five years thereafter. |
You want increased buying power on your home, yet more time when each rate adjustment occurs. |
Allows for a higher loan amount with more time to gain earning potential between rate adjustments. |
You could potentially miss out on lower interest-rate environments during the five-year fixed periods. |
| Why Choose This | Pros | Cons | |
|---|---|---|---|
| Land Purchase |
You want to purchase land now and build later.
|
|
|
| Why Choose This | Pros | Cons | |
|---|---|---|---|
| Qualifying Income |
You need expanded options for qualifying income.
|
Low down payment.
|
Income limitation - not all members will be eligible.
|
| Credit Qualifications |
You need flexible credit qualifications.
|
Flexible sources for funds for down payment and closing costs.
|
Principal residences only (1-4 units)
|
| Limited Down Payment |
If you have limited cash for a down payment.
|
Flexibilities for income sources used to qualify.
|
|
| Initial Fixed Rate |
Initial fixed interest rate options are 5, 7 or 10 years; rate adjusts every 6 months thereafter.
|
Need more information?
Just stop by your Neighborhood Financial Center, and we can answer your questions and help you find the home loan that's right for you. Make an appointment.
*Income limits may apply. HomeReady is a trademark of Fannie Mae. Loans are subject to credit approval and other underwriting criteria. Certain restrictions apply. Home Loan programs, terms and conditions subject to change without notice.
Loans are subject to credit approval and other underwriting criteria, and not everybody will qualify. Certain restrictions apply. Home loan programs, terms and conditions are subject to change without notification. Boeing Employees' Credit Union NMLS ID 490518.