Looking for cost savings when purchasing a home?
Lake Area Mortgage offers a 5-year Adjustable-Rate Mortgage (ARM) that is a great option for homebuyers with plans to sell within five years or select a lower interest rate now with plans to refinance into a fixed rate in the future.
ARM rates are often less than comparable fixed-rate mortgages, resulting in lower monthly mortgage payments. Hereās how it works:
A 5-year ARM features a fixed rate for the first five years of the loan. After five years, the rate becomes variable, fluctuating with market conditions, and will adjust every six months for the life of the loan.
5-Year ARM product highlights:
- Minimum down payment is 3%
- Minimum Credit Score: 620 if LTV is 80% or lower
- Reduced Mortgage Insurance (PMI) is required if above 80% LTV
- Occupancy Type: Primary Residence, Second Home, Investment
- Property Type: Single Family Residence, Townhome, PUD, Condominium, or Twin Home
Questions?
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See how the flexibility of an Adjustable Rate Mortgage can help you meet your goals.
This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be available at time of application. This is not an offer to enter a loan agreement at a specific rate. An offer to enter into such an agreement may only be made pursuant to Minn. Stat. 47.206. Information and/or data are subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Lake Area Mortgageā¢ is a division of Royal Credit Union, 1200 County Road E., Ste 200, Arden Hills, MN 55112. NMLS# 543781.
