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 / Loans / Home / Adjustable-Rate Mortgage
 

Adjustable-Rate Mortgage

Adjustable-Rate Mortgages (ARMs) are great if you’re not looking to stay in a property long or you anticipate growth in your income over time. The way an ARM works is you have a set, low fixed rate for a certain period of time, like 3, 5 or 7 years, then for the remainder of the loan the interest rate would adjust annually depending on the market. Properties that qualify for our Adjustable-Rate Mortgage are primary residences, second/vacation homes and rental properties.

Be sure to remember that with this particular loan your monthly payments may increase, but the benefit of having low rates initially can save you money.

Here are a few of the things you’ll find with our Adjustable-Rate Mortgages:

  • 3, 5 and 7 year fixed period
  • No prepayment penalty
  • Competitive fees

 

Who is this product right for?

Someone who is looking to purchase or refinance a home and needs a lower payment at the beginning stages of the loan.

Loan Rates

Please click here for up-to-date rates

Who is this product right for?

Someone who is looking to purchase or refinance a home and needs a lower payment at the beginning stages of the loan.

Related Articles

  • Adjustable Rate Mortgage Loan (ARM)
  • What is an adjustable rate mortgage (ARM) loan?

    It is a mortgage loan whose interest rate may vary after an initial 3, 5 or 7 year fixed term. This loan can be used to finance the purchase of a residence or to refinance an existing mortgage loan. Qualifying properties include primary residences, second homes or investment properties.

    Some Features of this Product:

    • Variable interest rate after an initial fixed term
    • 6% lifetime cap over the original rate
    • Maximum loan $1,000,000.00
    • Interest rate increases and decreases are limited to a 2% per year cap
    • No prepayment penalty
    • No negative amortization
    • Competitive Fees

    5/1 Arm is our program that is fixed for 5 years at the rate determined by the CU, then at the end of the 60 month payment the rate becomes adjustable and can adjust every 12 months. The 2.75 % margin is used for the ARM products. It is the rate spread that is added to the FNMA mandatory (index) rate to determine the rate to be used for the next 12 months.

    Click here for more information on Real Estate Loans.


  • Mortgage Escrow Account FAQs


  • When was my annual escrow statement mailed?
    Statements are mailed annually during the first half of the year.


    I am a co-mortgagor. Will I receive my annual loan statement?
    Delta Community Credit Union sends one statement to the primary mortgagor at the current mailing address.


    Will my monthly escrow amount ever change?

    It is possible that your monthly amount will change if there are changes in the bill amounts paid out of your escrow account.


    Why did my payment change?

    Hazard Insurance Premium

    Your hazard insurance premium may have changed (decreased or increased) if you changed the type or extent of your insurance coverage, or your insurance company may have changed (decreased or increased) your insurance rate.

    Real Estate Taxes

    Your Real Estate taxes may have changed (decreased or increased) as a result of your property being reassessed or the tax rate itself may have changed (decreased or increased). If you have appealed your property taxes and you are granted an adjustment, please notify us so your account can be updated accordingly.

    If you have questions about your property taxes or homeowner's insurance premiums, please contact your local taxing authority or insurance agent.


    I received a refund so why did my monthly escrow payment amount increase?

    There could be several reasons. Two common reasons are:

    • Delta Community Credit Union has adjusted the amount of the cushion to the RESPA "two month" limit, unless state law provides for a lower amount.
    • Bills (taxes, insurance, etc.) paid from the account may have gone up and the account changed to reflect these increases. There must be enough money in your escrow account to pay your property taxes and/or insurance. If there is not enough money in your account, that creates a shortage and we will need to increase your monthly escrow payment amount. Some common reasons for a shortage include: increases in property taxes and/or insurance premiums, tax reassessments, insurance carrier changes or due date changes, fewer escrow deposits than expected.


    Why did I not earn interest on my escrow account?

    Delta Community Credit Union is required to pay interest on escrow accounts only for specified states. If your statement does not reflect interest earned on your account, then your state does not require interest to be paid on your escrow account.


    What happens if I have a Shortage and/or a Deficiency?

    Delta Community Credit Union performs an escrow analysis annually. You will be notified of any shortage and/or deficiency at that time. If you have a shortage on your escrow account and desire to pay it in full, please contact the Mortgage Servicing department at 866-963-7811 or 404-677-8784.


    If I want to pay my entire shortage in full, where do I send my payment?

    Checks should be made payable to Delta Community Credit Union for the full amount of your shortage. Write your loan number and escrow shortage payment on the check. Send it to:

    Delta Community Credit Union

    Mortgage Servicing Department

    P.O. Box 4029

    Peachtree City, GA 30269


    Will my escrow payment amount remain the same if I pay my shortage in full?

    If you pay your shortage in full, you will have the smallest possible increase in your monthly mortgage payment. However, your payment amount may still change if your property taxes and/or insurance amounts increased during the past year.


    Can my escrow balance be refunded?

    Delta Community Credit Union performs an escrow analysis annually. You will be notified of any overage at that time. If your loan is current, overages in excess of $50.00 will be refunded to your savings account. If your surplus is less than $50.00, your monthly payment will be been adjusted.




  • FAQs about Applying for a Mortgage

  • 1. In what states does Delta Community CU offer mortgage loans?

    We offer first and second mortgages in the following states:



    Alabama Indiana North Carolina Utah
    California Kentucky Ohio Virginia
    District of Columbia Michigan South Carolina
    Florida Minnesota Tennessee
    Georgia New York Texas



    To apply for a mortgage in another state locate a credit union in your state at www.creditunionsonline.com.



    2. On what properties does Delta Community CU offer mortgage loans?


    We offer both first (purchase or refinance) and second (home equity) mortgages on the following properties:

    • Single family residence

    • Duplex/multi-unit building
    • Planned Unit Development (PUD) - subvision
    • Condominium
    • Townhouse

    The occupancy types are:


    • Primary residence
    • Second or vacation home
    • Investment Properties

    3. What types of mortgage loans are not offered at Delta Community CU?


    We do not currently offer FHA loans, construction loans, VA loans or "rehab" loans.



    4. What types of structures will Delta Community Credit Union finance with a mortgage loan?


    Loans are available on the following types of structures:

    • Single family residences
    • Duplex/Multi unit buildings
    • Planned Unit Developments (PUD) subdivisions
    • Condominiums
    • Townhomes
    • Land/Lot for future building of residence

    We do not offer mortgage loans on mobile homes.

    5. What type of first mortgage products does Delta Community CU offer?


    We offer the following types of first mortgages:

    Fixed Rate Mortgages-

    • 10-15-20 or 30 year terms with or without origination fee
    • Land/Lot Loans 5 and 10 year terms

    Adjustable Rate Mortgages

    • 3/1 year term ARM
    • 5/1 year term with or without origination fee ARM
    • 7/1 year term with or without origination fee ARM
    • 3/1 Helper ARM
    • First Time Homebuyer 5/1 ARM

    First Time Home buyer Mortgages- No Origination Fee

    • 15, 20, 30 year terms
    • 5/1 ARM
    • 7/1 ARM

    Jumbo loans

    • For properties over $417,000


    6. What type of second mortgage products does Delta Community CU offer?

    We offer the following types of second mortgages:

    Home Equity Fixed Rate

    • 5 10 or 15 year terms

    Home Equity Line of Credit (Not available in Texas due to state laws)

    Purchase Money Second Mortgages (first mortgage must be with Delta Community CU)

    • 5-10-15 year terms and 15 year balloon



    7. Where can I determine what my monthly payment and closing costs would be on a mortgage loan?

    Estimated monthly payment and closing costs for a first or second mortgage can be found by using our online Loan Consultant. Click here.



    8. On what day of the month is my first mortgage payment due?

    First mortgage payments are due on the 1st of every month. They are not considered late until after the 15th.



    9. How do I lock the interest rate on my application in process?

    You may lock in an interest rate with an online mortgage loan application or you may contact your Home Loan Specialist. If you do not know the Home Loan Specialist who has been assigned to your loan, click here for our Home Loan Specialists contact information.


    10. When will an appraisal be completed on my home and how much are the appraisal fees?

    Once an appraisal is ordered by Delta Community CU, the appraiser will call to make an appointment to appraise your home.
    Appraisal fees vary depending on the type of appraisal request and the size of the property to be appraised. Contact you Home Loan Specialist for further details. Click here for our Home Loan Specialists contact information.



    11. If I previously applied for a home loan. can I use the same Login ID and Password when applying for another loan?

    Each new mortgage loan application requires its own Login ID and Password



    12. I cannot remember the Login ID and Password to sign into my mortgage loan in progress.

    If you have forgotten your Login ID or Password, contact your Home Loan Specialist. If you do not know the Home Loan Specialist who has been assigned to your loan, any Home Loan Specialist can assist you. Click here for our Home Loan Specialists' contact information.

    13. I just submitted an application and would like to add or remove my spouse as a borrower.

    The Home Loan Specialist assigned to your pending mortgage loan would have to make any changes to the application. Click here for our Home Loan Specialists contact information.

    14. Do I receive a lower interest rate if I enter my mortgage application online?

    Online applications for mortgages do not receive a lower interest rate.




    15. How do I obtain a pre-approval letter?

    When you are pre-approved, you can log into your pending application online and print a pre-approval letter.


    16. I have applied for a mortgage loan and received my initial disclosures, but I have questions. Who should I contact?
    The Home Loan Specialist assigned to your loan application can answer questions about your initial disclosures. Click here for our Home Loan Specialists contact information.



    17. Are appraisal fees refundable if I do not qualify for the loan or wish to withdraw my application?

    Appraisal fees are not refundable.


    18. Do you offer a First-Time Home-Buyer program?

    Delta Community CU offers a First-Time Homebuyers loan product. Contact one of our Home Loan Specialists for details. Click here for a list of Home Loan Specialists and their locations.


    19. What is the minimum score needed to be considered for a for a mortgage loan?

    The minimum credit score differs depending on the loan product you choose and the loan to value (LTV) ratio.



    20. What is the contact information for the Real Estate Services?


    Mailing Address:

    Real Estate Services

    P.O. Box 3289

    Peachtree City, GA 30269


    Physical Address:

    Real Estate Services

    315 North Highway 74

    Peachtree City, GA 30269

    FAX Number: (770)-632-8761
    To contact our Home Loan Specialists by email click here.

    21. Does Delta Community CU sell my information to other companies after I close my mortgage for solicitations?

    It is the policy of Delta Community Credit Union to hold member information in confidence, subject to applicable legal requirements. It is the policy of Delta Community Credit Union not to sell member information for use by non-affiliated third parties. When you close on a mortgage, documents are required to record the transfer of ownership of a property. Since this is a matter of public record some third parties will scan such recordings, and use your name and address, along with Delta Community CU as the lien holder to send solicitations to you.

    22. Do I have to be a member of the credit union to apply for a mortgage loan?

    You do not have to be a member to make an application for a mortgage loan, but you must become a member prior to the closing of your loan.



  • Conventional Home Loan
  • What is a conventional home loan?

    A conventional home loan is a 10, 15, 20 or 30 year fixed rate or adjustable rate mortgage. This loan helps members to finance the purchase of a residence or provide cash from existing equity. Qualifying properties include primary residences second/vacation homes and investments.
    Apply online, call our Mortgage Call Center at 866-963-7811, speak with a Home Loan Specialist or click on Real Estate Loans for more information.

  • Annual Percentage Rate (APR) for first mortgage
  • What is the Annual Percentage Rate (APR) for a 1st mortgage? The Annual Percentage rate on your 1st mortgage loan is an interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs, such as private mortgage insurance, loan discount, origination fees, and other credit costs. The APR allows you to compare different types of mortgages based on the annual cost for each loan.

Apply Now

It doesn’t take long to apply online, and you might even receive an instant approval based on your credit report. Simply click here to start the application, or contact us at 1-800-544-3328.
 
Please click here to find the location and contact information for all of our  Home Loan Specialists.

 

Who is this product right for?

Someone who is looking to purchase or refinance a home and needs a lower payment at the beginning stages of the loan.

 
 
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