5/1 Adjustable Rate Mortgage Programs
Alaska USA's 5/1 Adjustable Rate Loan Programs (ARMs) are ideal for people shopping
for a low mortgage rate, looking to maximize their home buying dollar, or members who expect
to refinance or move in the future.
Below market rates today gives you additional buying power and may save you money over
the life of the loan. Here's how our Adjustable Rate loan programs work:
- Low rates. The adjustable rate loan offers mortgage rates as much as one
percentage point below current market rates for a conventional fixed rate 30-year loan.
- Save now by locking into below market rates today. Lock-in your best rate
when you apply. This rate is guaranteed for up to 60 days. If interest rates have dropped before
your closing date, you have a one time option to get the lower of the two rates.
- Low down payment. Qualifying borrowers can get into a home
with as little as 5% down and no discount points.
- Fixed rates for the first three or five years. Your mortgage rate is
fixed for the first three or five years (depending on the program you select).
After the initial period the rates adjust annually based on prevailing market rates at
the time. Upward rate adjustments are limited to 2% in any year and 6% over the
life of the loan.
Restrictions
Yes, even a deal this good has limits.
- All loans must be on single-family detached or duplex residences or zero-lot-line
homes that are the primary residence of the member, or will be the future primary
residence in the case of retirement homes.
- Maximum length of the mortgage is 40 years. Shorter terms are available in
5-year increments.
- Escrow reserve requirements are consistent with FNMA rules.
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