Fixed Rate vs. 6/2 ARM Loan Comparison

Virginia Credit Union is dedicated to providing the right type of mortgage loan to suit your needs. Current market conditions may cause some borrowers to shy away from adjustable rate mortgages. However, Virginia Credit Union's 6/2 ARM can give you the buying power you need for the home you want, without the fear of dramatic changes in future changes.

• Your initial rate is locked in for the first 6 years of your loan. After the first 6 years, your rate may adjust up or down every 2 years.
• Your rate may never adjust by more than 1% at each adjustment period.
• Your rate may never adjust by more than 5% over the life of the loan.

Although the 30-year fixed rate mortgage is popular among home buyers, the chart below shows you how our 6/2 adjustable rate mortgage could work for you.

In this example we've used a $150,000 home with a 30-year mortgage and a 5% down payment, making the loan amount $142,500*.
 

For the 6/2 ARM in this example, approximate savings each month in PMI and interest for the first six years is $86. That's $6,192 over the first six years. Plus, with the lower interest rate and smaller origination fee, you save $588 at closing.

Contact us and we'll be glad to help you calculate payments based on your situation.

Check our current mortgage rates >>

*Interest rate and other information provided is for illustrative purposes only. Actual rates will vary.