Adjustable-Rate Mortgage

Increase your purchasing power with a lower rate.

Flexible financing for your home

Here's how an Adjustable-Rate Mortgage (ARM) could help you bank better:

  • A good choice if you plan to sell, refinance or pay off your home within 10 years
  • ARMs maximize purchasing power with a lower rate and lower initial payment
  • Rate is fixed for 5, 7 or 10 years before adjusting every year or every 5 years (known as our 5/1, 5/5, 7/1 and 10/1 ARMs)
  • Rate will change, depending on market conditions, after your introductory term of 5, 7 or 10 years
  • A cap on the rate protects you from drastic increases
  • This mortgage is eligible for an annual Loyalty Bonus payout 

Just the Facts

Why Choose an ARM?

We believe North Carolina homeowners like you deserve more options when financing their homes. A Coastal ARM could help increase your purchasing power and reduce your monthly payments. If you plan to live in your home for 10 years or fewer, an ARM could provide flexibility you won’t get with a fixed-rate mortgage.

You'll always be working with your neighbors at Coastal because we never sell your mortgage to another institution for servicing. And as a not-for-profit credit union, we keep our underwriting fees as low as possible and there are no fees for document prep or checking credit reports. Just more ways we offer a better way to bank.

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I was able to buy my first home on my own without using all of my savings.
Margaret H.

Frequently Asked Questions

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change.

If everything seems to be in good standing on your application, you will be able to obtain a pre-qualification letter. Although it is not necessary to be pre-qualified, it is highly recommended before making an offer. It demonstrates to both you and to sellers how much house you can afford. It can be frustrating for both buyers and sellers to agree upon an offer, only to find out the buyer is unable to qualify for it.

Pre-qualification is based solely on the data you give in your loan application. From this information, your lender can provide a ballpark estimate of how much you can borrow, but your pre-qualified amount isn’t yet a definite thing. Pre-approval is a commitment in writing for an exact loan amount, after your lender has taken a closer look at, and verified, your financial situation and history.

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on several factors, including your current financial picture and how long you intend to keep your house. Coastal Credit Union can help you evaluate your choices and help you make the most appropriate decision.

As a first-time buyer, the first step in purchasing a home is to determine what exactly you can afford. By using one of the several calculators on our website, you will be able to figure out affordability in relation to finances, credit score and other information.

All loans are subject to approval. Taxes and insurance are not included in this payment example and that the actual payment obligation could be greater. 

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