ARM Loan
Adjustable Rate Mortgage
Now is the time to lock in a low mortgage rate and start on your path to buying your dream home. Lower Initial Rates. Flexible Terms. More Buying Power.
Starting Rate as Low as 5.10%1 (5.355% APR* at 2.0 points, fixed for the first 5 years)
We know the home-buying market is hard to get into right now, and with
an ARM loan you could be opening yourself up to more potential homes.
What is an ARM?
An ARM is a mortgage with a fixed interest rate for an initial period followed by periodic rate adjustments based on the market. This means lower monthly payments at the beginning of your loan term, giving you extra cash for renovations, savings, or your next adventure.
ARM loans can help you potentially get a lower initial interest rate, so you get more buying power with a lower payment!
Questions? We can help.
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and Saturday 9AM - 2PM CST
Talk to a Dallas-Fort Worth, TX Mortgage Loan Specialist
972-705-4845
Get a personalized mortgage consultation
Why Chose an ARM with CUTX?
Lower Initial Payments
Enjoy a reduced interest rate for the first 5 years.
More Buying Power
A lower rate means a lower payment—so you may qualify for a more expensive home.
Flexible Options
Choose the term that best fits your plans. Expecting to move or refinance in a few years? An ARM might be the perfect fit.
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Financial CalculatorsARM FAQs
What is an Adjustable Rate Mortgage (ARM)?
An ARM is a home loan with an interest rate that is fixed for an initial period and then adjusts periodically based on market conditions. This structure often offers lower initial rates compared to fixed-rate mortgages.
How often does the interest rate change after the fixed period ends?
After the fixed-rate period ends, the interest rate adjusts every 6 months. The new rate is based on a market index plus a fixed margin, which will be outlined in your loan terms.
Is there a limit to how much my interest rate can increase?
Yes. ARMs have rate caps that limit how much your interest rate can increase at each adjustment and over the life of the loan. These caps help protect you from dramatic rate increases.
Who should consider an ARM?
An ARM may be a smart choice if you plan to move, refinance, or pay off your mortgage before the fixed-rate period ends. It’s also great for buyers who want lower initial monthly payments or expect their income to rise over time.
Can I refinance my ARM into a fixed-rate mortgage later?
Yes! Many homeowners choose to refinance before the adjustable period begins. This can be a great way to lock in a fixed rate if interest rates are favorable at that time.
Why CUTX?
The stuff, loan team and customer service were very helpful throughout my car loan process. Credit Union of Texas was able to offer me the best rate available for my vehicle. I would highly recommended CUTX to all of my friends and family.
Abebe A.
Russell V.
I simply love this credit union location. My family has gotten several auto loans and personal loans there. I have been a member for over 30 years and my children have accounts also.
Laretha S.
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1ARM loans are variable rate loans; interest rates and payments may increase after consummation. After the initial fixed-rate period, the interest rate can increase or decrease annually according to the market index. Any change may significantly impact the monthly payment. For example - 5/6 ARM with a term of 30 years for $300,000 with an Annual Percentage Rate (APR) of 5.355%. *Adjustable-Rate Mortgage of 5.10%, your monthly payments for years 1 – 5 would be $1,628.85, your monthly payments for year 6 would be a maximum of $2,145 (7.10%) and your monthly payments for years 7 - 30 would be a maximum of $2,512 (10.10%) (based on the current Index, Margin, Change and Life of Loan Caps). Monthly payments do not include taxes and insurance, and the actual payment obligation could be greater. The variable interest rate is subject to a floor of the Initial Interest Rate. The variable interest rate can increase or decrease after the fifth year by 2 percentage points and 1 percentage point each six months thereafter and can increase 5 percentage points over the Initial Interest Rate over the term of the loan.