Life is constantly changing-your mortgage rate must keep up. Adjustable-rate mortgages (ARMs) offer the benefit of lower rates of interest in advance, supplying an adaptable, cost-efficient mortgage option.

Adjustable-rate mortgages are developed for flexibility

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

An ARM is ideal for short-term house owners, purchasers expecting earnings development, financiers, those who can handle risk, first-time property buyers, and people with a strong monetary cushion.

- Initial set term of either 5 years or 7 years, with payments computed over 15 years or thirty years *

- After the preliminary fixed term, rate modifications take place no more than once per year

- Lower introductory rate and initial month-to-month payments

- Monthly mortgage payments might decrease

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

Take a look at this video that covers the basics!

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 alternatives feature a preliminary set term of either 5 years or 7 years, with payments computed over 15 years or 30 years. Choose a much shorter loan term to conserve thousands in interest or a longer loan term for lower month-to-month payments.

Mortgage loan producer and servicer information

- Mortgage loan producer details Mortgage loan pioneer information The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requires credit union mortgage loan producers and their employing organizations, in addition to employees who act as mortgage loan originators, to register with the Nationwide Mortgage Licensing System & Registry (NMLS), get an unique identifier, and preserve their registration following the requirements of the SAFE Act.

University Credit Union's registration is NMLS # 409731, and our specific 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 information regarding mortgage loan pioneers at no charge by means of www.nmlsconsumeraccess.org.

Ask for info related to or resolution of an error or errors in connection with a current mortgage loan should be made in composing via the U.S. mail to:

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

Mortgage payments might be sent out through U.S. mail to:

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

Contact TruHome by phone throughout company hours at:

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 rates of interest to take pleasure in foreseeable month-to-month mortgage payments.

- What is a UCU adjustable-rate mortgage? What is a UCU adjustable-rate mortgage? An adjustable-rate mortgage (ARM), likewise called a variable-rate mortgage or hybrid ARM, is a mortgage with a rates of interest that adjusts over time based on the market. ARMs usually have a lower initial rates of interest than fixed-rate mortgages, so an ARM is a money-saving option if you desire the generally lowest 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 fantastic choice for short-term property buyers, buyers expecting income development, investors, those who can handle threat, first-time property buyers, or people with a strong monetary cushion. Because you will get a lower initial rate for the fixed duration, an ARM is perfect if you're preparing to offer before that period is up.

Short-term Homebuyers: ARMs use lower initial costs, perfect for those planning to offer or refinance rapidly.

Buyers Expecting Income Growth: ARMs can be advantageous if income increases substantially, balancing out potential rate boosts.

Investors: ARMs can potentially increase rental earnings or residential or commercial property appreciation due to lower preliminary expenses.

Risk-Tolerant Borrowers: ARMs offer the capacity for substantial savings if rate of interest stay low or decline.

First-Time Homebuyers: ARMs can make homeownership more available by reducing the initial financial obstacle.

Financially Secure Borrowers: A strong financial cushion assists mitigate the threat of potential payment boosts.


To receive an ARM, you'll normally need the following:

- A good credit score (the exact score differs by lending institution).

- Proof of income to demonstrate you can handle month-to-month payments, even if the rate adjusts.

- A sensible debt-to-income (DTI) ratio to reveal your capability to manage existing and new financial obligation.

- A down payment (often at least 5-10%, depending on the loan terms).

- Documentation like income tax return, pay stubs, and banking statements.


Qualifying for an ARM can sometimes be simpler than a fixed-rate mortgage due to the fact that lower initial rate of interest mean lower preliminary month-to-month payments, making your debt-to-income ratio more favorable. Also, there can be more versatile criteria for certification due to the lower introductory rate. However, loan providers may want to ensure you can still afford payments if rates increase, so excellent credit and stable earnings are key.

An ARM typically features a lower preliminary interest rate than that of a similar fixed-rate mortgage, providing you lower monthly payments - a minimum of for the loan's fixed-rate duration.

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

First number: Represents the variety of years during which the rate of interest remains fixed.

- Example: In a 7/1 ARM, the interest rate is fixed for the first seven years.


Second number: Represents the frequency at which the rates of interest can change after the initial fixed-rate duration.

- Example: In a 7/1 ARM, the interest rate can adjust every year (once every year) after the seven-year set duration.


In simpler terms:

7/1 ARM: Fixed rate for 7 years, then changes each year.

5/1 ARM: Fixed rate for 5 years, then changes yearly.


This numbering structure of an ARM assists you understand how long you'll have a stable interest rate and how often it can change afterward.

Making an application for an adjustable -rate mortgage at UCU is easy. Our online application website is designed to stroll you through the procedure and help you submit all the required documents. Start your mortgage application today. Apply now

Choosing in between an ARM and a fixed-rate mortgage depends on your financial objectives and plans:

Consider an ARM if:

- You prepare to offer or re-finance before the adjustable duration begins.

- You desire lower initial payments and can deal with potential future rate boosts.

- You expect your earnings to increase in the coming years.

Consider a Fixed-Rate Mortgage if:

- You choose foreseeable month-to-month payments for the life of the loan.

- You plan to remain in your home long-term.

- You desire defense from interest rate changes.

If you're uncertain, talk with a UCU professional who can assist you evaluate your options based on your financial scenario.

How much home you can pay for depends on several factors. Your deposit can vary from 0% to 20% or more, and your debt-to-income ratio will affect your accepted mortgage amount. Calculate your expenses and increase your homebuying knowledge with our helpful tips and tools. Find out more

After the preliminary fixed duration is over, your rate may change to the marketplace. If prevailing market interest rates have actually decreased at the time your ARM resets, your monthly payment will also fall, or vice versa. If your rate does go up, there is always an opportunity to refinance. Discover more

* UCU ARM pricing based upon 1 year Constant Maturity Treasury (CMT). Rates subject to alter. All loans are readily available for purchase or re-finance of primary residence, second home, financial investment residential or commercial property, single household, one-to-four-unit homes, prepared system developments, condos and townhouses. Some restrictions may use. Loans issued based on credit review.