Life is always changing-your mortgage rate ought to keep up. Adjustable-rate mortgages (ARMs) use the benefit of lower rate of interest upfront, supplying an adaptable, cost-efficient mortgage solution.

Adjustable-rate mortgages are built for flexibility

Not all mortgages are created equal. An ARM offers a more versatile method when compared with standard fixed-rate mortgages.

An ARM is ideal for short-term property owners, purchasers anticipating earnings growth, financiers, those who can handle danger, first-time homebuyers, and individuals with a strong financial cushion.

- Initial fixed term of either 5 years or 7 years, with payments determined over 15 years or thirty years

- After the initial set term, rate modifications occur no greater than once each year

- Lower introductory rate and initial regular monthly payments

- Monthly mortgage payments might decrease

Wish to discover more about ARMs and why they might be an excellent suitable for you?

Have a look at this video that covers the fundamentals!

Choose your loan term

Tailor your mortgage to your needs with our versatile loan terms on a 5/1 ARM or 7/1 ARM. These options include an initial fixed term of either 5 years or 7 years, with payments calculated over 15 years or 30 years. Choose a shorter loan term to conserve thousands in interest or a longer loan term for lower monthly payments.

Mortgage loan begetter and servicer details

- Mortgage loan originator details Mortgage loan originator info The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) needs credit union mortgage loan begetters and their employing organizations, in addition to employees who act as mortgage loan pioneers, to register with the Nationwide Mortgage Licensing System & Registry (NMLS), get a distinct identifier, and keep their registration following the requirements of the SAFE Act.

University Credit Union's registration is NMLS # 409731, and our individual producers' names and registrations are as follows:

- Merisa Gates - NMLS ID # 188870.
- Estela Nagahashi - NMLS ID # 1699957.
- Miguel Olivares - NMLS ID # 2068660.
- Michelle Pacheco - NMLS ID # 662822.
- Britini Pender - NMLS ID # 694308.
- Sheri Sicka - NMLS ID # 809498.
- Elizabeth Torres - NMLS ID # 1757889.
- David L. Tuyo II - NMLS ID # 1152000.


Under the SAFE Act, customers can access details relating to mortgage loan begetters at no charge by means of www.nmlsconsumeraccess.org.

Requests for information associated to or resolution of an error or mistakes in connection with a current mortgage loan must be made in writing by means of the U.S. mail to:

University Credit Union/TruHome. Member Service Department. 9601 Legler Rd . Lenexa, KS 66219

Mortgage payments may be sent out via U.S. mail to:

University Credit Union/TruHome. PO Box 219958. Kansas City, MO 64121-9958

Contact TruHome by phone during company hours at:
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855.699.5946. 5 am - 6 pm PST Monday-Friday, 6 am - 11 am PST Saturday

Mortgage alternatives from UCU

Fixed-rate mortgages

Refinance from a variable to a set interest rate to delight in predictable regular monthly mortgage payments.

- What is a UCU adjustable-rate mortgage? What is a UCU adjustable-rate mortgage? An adjustable-rate mortgage (ARM), also called a variable-rate mortgage or hybrid ARM, is a mortgage with an interest rate that changes with time based upon the market. ARMs typically have a lower preliminary rates of interest than fixed-rate mortgages, so an ARM is a money-saving alternative if you want the normally most affordable possible mortgage rate from the start. Learn more

- Who would benefit most from an ARM? Who would benefit most from an ARM? An ARM is a great choice for short-term homebuyers, purchasers anticipating income growth, investors, those who can manage risk, novice property buyers, or people with a strong financial cushion. Because you will receive a lower initial rate for the set duration, an ARM is perfect if you're planning to sell before that duration is up.

Short-term Homebuyers: ARMs offer lower initial costs, ideal for those preparing to sell or refinance quickly.
Buyers Expecting Income Growth: ARMs can be beneficial if income increases significantly, offsetting potential rate boosts.
Investors: ARMs can potentially increase rental earnings or residential or commercial property gratitude due to lower preliminary expenses.
Risk-Tolerant Borrowers: ARMs use the capacity for substantial savings if interest low or decline.
First-Time Homebuyers: ARMs can make homeownership more available by decreasing the initial financial obstacle.
Financially Secure Borrowers: A strong financial cushion helps alleviate the risk of possible payment boosts.
To get approved for an ARM, you'll typically require the following:
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- A great credit history (the precise score differs by loan provider).
- Proof of income to demonstrate you can manage month-to-month payments, even if the rate changes.
- A reasonable debt-to-income (DTI) ratio to reveal your ability to manage existing and new financial obligation.
- A down payment (frequently a minimum of 5-10%, depending on the loan terms).
- Documentation like tax returns, pay stubs, and banking declarations.
Receiving an ARM can in some cases be much easier than a fixed-rate mortgage since lower preliminary rates of interest suggest lower initial month-to-month payments, making your debt-to-income ratio more favorable. Also, there can be more flexible requirements for qualification due to the lower introductory rate. However, lenders may want to ensure you can still pay for payments if rates increase, so excellent credit and stable earnings are crucial.

An ARM typically features a lower preliminary interest rate than that of an equivalent fixed-rate mortgage, giving you lower regular monthly payments - a minimum of for the loan's fixed-rate period.

The numbers in an ARM structure describe the preliminary fixed-rate period and the adjustment duration.

First number: Represents the number of years throughout which the rates of interest stays set.

- Example: In a 7/1 ARM, the rate of interest is fixed for the first seven years.
Second number: Represents the frequency at which the interest rate can adjust after the preliminary fixed-rate duration.

- Example: In a 7/1 ARM, the interest rate can change each year (when every year) after the seven-year set period.
In easier terms:

7/1 ARM: Fixed rate for 7 years, then adjusts each year.
5/1 ARM: Fixed rate for 5 years, then changes annually.
This numbering structure of an ARM helps you comprehend for how long you'll have a steady interest rate and how often it can change later.

Getting an adjustable -rate mortgage at UCU is easy. Our online application website is developed to stroll you through the procedure and assist you send all the required documents. Start your mortgage application today. Apply now

Choosing in between an ARM and a fixed-rate mortgage depends on your monetary goals and strategies:

Consider an ARM if:

- You prepare to offer or refinance before the adjustable duration starts.
- You want lower preliminary payments and can deal with potential future rate boosts.
- You expect your income to increase in the coming years.


Consider a Fixed-Rate Mortgage if:

- You choose foreseeable monthly payments for the life of the loan.
- You plan to remain in your home long-lasting.
- You desire security from rate of interest fluctuations.


If you're not sure, speak to a UCU expert who can help you evaluate your options based on your monetary scenario.

How much home you can manage depends on several aspects. Your down payment can vary from 0% to 20% or more, and your debt-to-income ratio will affect your approved mortgage amount. Calculate your costs and increase your homebuying understanding with our helpful ideas and tools. Find out more

After the initial fixed period is over, your rate might get used to the market. If prevailing market interest rates have actually gone down at the time your ARM resets, your month-to-month payment will likewise fall, or vice versa. If your rate does go up, there is always an opportunity to refinance. Discover more

UCU ARM prices based upon 1 year Constant Maturity Treasury (CMT). Rates subject to change. All loans are offered for purchase or refinance of main house, second home, investment residential or commercial property, single family, one-to-four-unit homes, prepared system advancements, condominiums and townhouses. Some constraints might apply. Loans issued based on credit review.