Adjustable-Rate Mortgage (ARMs) Loans
Flexible Terms to Fit All of
Your Home-buying Needs
Navy Federal Credit Union's Adjustable-Rate Mortgages (ARMs) begin with a low, fixed rate, and then adjust upward or downward after the initial fixed term. These loans are ideal if you need a larger loan amount but want to keep your payments lower initially. An ARM may also be a good choice if in the years ahead, you expect your income to increase or plan to move or refinance when the rate adjusts.
ARM products contain two numbers. The first number refers to the number of years the interest rate at closing remains fixed. The second number is the number of years in between interest rate changes after the initial fixed term expires. A 5/1 ARM, for example, would have the same interest rate for five years after closing, and then the rate would adjust every year after that. In other words, the interest rate would be subject to change annually after the first five years.
- No Private Mortgage Insurance (PMI) or Upfront Mortgage Insurance Premium (UMIP) is required for 2/2, 3/5, 5/5 and all Jumbo Adjustable Rate Mortgage (ARM) terms
- Interest-only mortgage options available for terms of 3/1, 5/1, 7/1 and 10/1
- 100% financing available for 3/5 and 5/5 terms for purchase only1
- Refinance options available
- Lower fixed-rate loan payments for the initial term
- Variety of initial terms, followed by interest rate adjustments
Rates Rates as of: August 21, 2017, 1:00 AM ET
We offer both conforming and jumbo ARMs. The maximum loan limit for conforming loans is typically $424,100, though the loan limit can vary by state and county. Jumbo loans are for amounts greater than $424,100. Use the calculator to figure out how much you might pay and to view disclosure and payment example information.
| Loan Type | Interest Rates From2 | Discount Points | APR as Low As2 | First Cap | Subsequent Caps | Lifetime Cap | ||
|---|---|---|---|---|---|---|---|---|
| 3/1 Conforming ARM | 1.875% | 0.250 | 3.636% | 2.00% | 2.00% | 6.00% | Payment Example | APPLY |
| 5/1 Conforming ARM | 2.625% | 0.250 | 3.644% | 2.00% | 2.00% | 5.00% | Payment Example | APPLY |
| 2/2 Conforming ARM | 2.000% | 0.250 | 3.698% | 1.00% | 1.00% | 8.00% | Payment Example | APPLY |
| 3/5 Conforming ARM | 2.375% | 0.250 | 3.571% | 2.00% | 2.00% | 5.00% | Payment Example | APPLY |
| 5/5 Conforming ARM | 2.750% | 0.250 | 3.526% | 2.00% | 2.00% | 5.00% | Payment Example | APPLY |
| 3/1 Jumbo ARM | 2.125% | 0.250 | 3.708% | 2.00% | 2.00% | 6.00% | Payment Example | APPLY |
| 5/1 Jumbo ARM | 2.625% | 0.250 | 3.644% | 2.00% | 2.00% | 5.00% | Payment Example | APPLY |
| 3/5 Jumbo ARM | 2.375% | 0.250 | 3.571% | 2.00% | 2.00% | 5.00% | Payment Example | APPLY |
| 5/5 Jumbo ARM | 2.750% | 0.250 | 3.526% | 2.00% | 2.00% | 5.00% | Payment Example | APPLY |
Included with All Navy Federal Mortgages
- Nationwide availability
- Personal guidance from first call to closing
- Navy Federal servicing for the life of your loan
1Product features subject to approval. Percentage financing loans include an additional funding fee, which may be financed up to the maximum loan amount. Available for purchase loans only.
2Rates are based on evaluation of credit history, loan-to-value, and loan term, so your rate may differ. Rates subject to change at any time. Rates may increase after consummation. ARM rate adjustments are determined by an index and margin, the index of which is variable and therefore unknown for future payments. For primary residences and second homes only. All rates quoted above require a 1.00% loan origination fee. The origination fee may be waived for a 0.25% increase in the interest rate.
Since 1933, Navy Federal Credit Union has grown from seven members to over 7 million members. And since that time, our vision statement has remained focused on serving our unique field of membership:
Be the most preferred and trusted financial institution serving the military and their families.
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