Adjustable Rate Mortgages
Looking for a Home Financing option with a lower initial monthly payment? Adjustable-Rate Mortgages can maximize your buying power.
What is an Adjustable-Rate Mortgage?
Adjustable-Rate Mortgages (ARMs) are home loans where the interest rate could change over time. It starts with a fixed interest rate and becomes a variable-rate loan after the initial term. TEG’s ARM rate is determined by the Secured Overnight Financing Rate (SOFR) index rate and adjusts up or down depending on market conditions after the fixed rate term expires.
Unlike a fixed-rate mortgage, homeowners with this type of home loan aren’t guaranteed the same interest rate for the duration of their loan. This means that your payments may fluctuate. When interest rates go up, your monthly mortgage payment may increase, but when interest rates go down, your monthly mortgage payments may decrease. The risk of an increasing interest rate is something that borrowers should consider when considering an adjustable-rate mortgage for their home financing.
ARM products contain 2 numbers:
When ARMs are advertised, you’ll see products advertised like this: 10/6 ARM
- The interval at which rates are adjusted after the initial period, in this case, 10 years.
- The second number is how often the rate adjusts after the fixed period – in this case, every 6 months.
Today's Featured Adjustable-Rate Mortgage (ARM) Rates*
| Mortgage Type | Rate as low as | APR as low as | Points | First Cap | Subsequent Cap | Lifetime Cap |
|---|---|---|---|---|---|---|
| 5/6 ARM | 6.250% | 7.195% | 0.750% | +/- 2.00% | +/- 1.00% | +/- 5.00% |
| 10/6 ARM | 6.500% | 7.000% | 0.750% | +/- 5.00% | +/- 1.00% | +/- 5.00% |
See all of our Rates here.
Why Choose an Adjustable-Rate Mortgage?
✓ Maximize your buying power
✓ Looking for an option with a lower initial monthly payment
✓ Plan to purchase a new home or refinance within the fixed term of the loan (5 to 10 years)
✓ Expecting interest will be lower in the coming years
This loan is great for members who want their specific situations to be considered. For example, if you own a home and want to refinance your loan, knowing you’ll be transferred in 5 years, a 5/6 ARM loan might be a great option. You’ll make a lower payment for the first 5 years of a 5/6 ARM loan than if you refinance with a fixed-rate loan.
ARMs can be complex, so it is a good idea to work closely with a mortgage specialist to be sure to understand all the terms and conditions that can impact your payment now and in the future.
Adjustable Rate Mortgage FAQ
How often will my mortgage rate change?
Fixed-rate mortgages never fluctuate. In contrast, adjustable-rate mortgages will adjust their interest rate once per year.
What will my mortgage payments look like?
Calculate your preliminary monthly mortgage payment by relying on our mortgage rate calculator. Note that these numbers are only predictions, and may not necessarily reflect your final monthly costs.
Can I lock in my mortgage interest rate?
Yes! And we encourage it. Contact your loan officer as soon as possible to lock in your desired interest rate.
Meet Our Mortgage Loan Officers
We are here to help you secure the loan approval you need! With an extensive background in mortgage lending, we are committed to helping you find the best possible financial solution. APPLY TODAY with one of our Mortgage Officers.
NMLS# 22486
JESSICA SCHOEN
Senior Mortgage Officer
I have many years of experience working with first-time home borrowers, so you can be confident I'll help you find the mortgage loan best suited to your individual needs.
NMLS# 404022
MATTHEW BANNAN
Senior Mortgage Officer
Home financing is one of the biggest decisions you will make. Let me answer your questions, help you find the right loan for your situation, and make the process as anxiety-free as possible.
NMLS# 404038
DARREN DiBENEDETTO
Senior Mortgage Officer
With a relentless focus on customer service, Darren has consistently delivered results that have earned acclaim and acknowledgment.
NMLS# 1841508
SCOTT MCNALLY
Mortgage Loan Officer
Financing a home doesn’t need to be stressful. I’m here to help you find the right loan. Whether this is your first home purchase, an investment property or a refinance, I will ensure your mortgage process runs efficiently and smoothly.
NMLS# 1466211
JEFFREY SHIELDS
Mortgage Loan Officer
Known for outstanding service, you can count on me to look out for your interests and keep you informed throughout the mortgage process. I strive to make borrowers feel at ease and get to their goal of homeownership.
NMLS# 2514289
KEVIN ARDUINO
Mortgage Loan Officer
My leadership experience is valuable in my role as a Mortgage Officer. I'm passionate about providing the best solution with incredible service and will strive to exceed your expectations.
See What Our Members Have To Say
★★★★★
“TEG has always provided professional service and commitment to me as one of their clients. I have been a member for 30 years and have always been made welcome. I have had various loans and always received complete information on each. TEG is a great community institution.” — Peter H.
“Jessica and TEG were great to work with through our first-ever home-buying experience. Answered all our questions and were able to connect us to the right people when we needed more. We had a tight timeline and they worked quickly with our Attorney to get the sale closed! Thank you!” — Grant N.