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Personal and Business Banking

DCU Adjustable Rate Mortgages

Adjustable Rate Mortgages (ARMs)


Low starting rates and payments make
ARMs a great way into home ownership.

5/1 ARM as low as

%


APR*

fixed for the first 5 years

Whether you’re a first-time homebuyer looking to purchase your dream house, or you’re simply refinancing, DCU’s ARMs provide a range of options as well as lower starting rates than fixed-rate mortgages.

  • Lower payments and starting rates – Depending on the option you choose, your rate is locked for the first 5, 7, or 10 years and can change periodically after that.
  • 30-year terms – Keep your payments manageable with no prepayment penalties.
  • Borrow for 1 to 4 family primary residences
  • 60-day rate lock – Don’t lose out on that low rate as you go through the mortgage process!
  • DCU service for the life of the mortgage – Never worry about having to make a payment to a different lender.

*APR – Annual Percentage Rate. Please note that APR may increase after consummation.

Apply Now ›

Adjustable Rate Mortgage Rates:

The following Adjustable Rate Mortgage rates are for loans up to $453,100*

Apply Now ›
Term / Property Months Points Interest Rate APR** Initial/Annual/
Life Rate Change
Caps
Margin/Index Estimated
Monthly Payment
per $1,000^
5/1 ARM First 60
Next 300
0 4.000%
5.250%
4.87%
4.87%
2% / 2% / 5% 2.75% / 2.55% $4.77
$5.42
5/5 ARM First 60
Next 300
0 4.250%
5.500%
5.20%
5.20%
2% / 2% / 5% 2.75% / 2.87% $4.92
$5.64
7/1 ARM First 84
Next 276
0 4.125%
5.250%
4.82%
4.82%
5% / 2% / 5% 2.75% / 2.55% $4.85
$5.39
10/1 ARM First 120
Next 240
0 4.250%
5.250%
4.73%
4.73%
5% / 2% / 5% 2.75% / 2.55% $4.92
$5.35

^Estimated Monthly Payment per $1000 – Loan principal and interest. If an escrow account for taxes and insurance is required, total monthly payment will be higher. The stated amount per $1,000 is based on the fixed rate period and the payment will likely increase after that period of time.

*Rates are effective  and are subject to change at any time, and may increase. Rates locked in today for 60 days have an expiration date of . Rates apply to loans up to $453,100 (also known as "conforming mortgages").

**APR – Annual Percentage Rate. Please note that APR may increase after consummation.

All rates are based upon a 30-year term, owner occupied, and up to 60% of home value.

Rates and Fees disclosed are for loans that meet Secondary Mortgage Market underwriting standards; additional rate and fees may apply for loans outside of those guidelines.

Rate Change Caps – This is the maximum amount interest rates on Adjustable Rate Loans can change up or down. The first number is the amount they can change up or down on the first adjustment date. The second number is the amount they can change each subsequent year on the anniversary date. The third number is the maximum total change, up or down, over the life of the loan. Since the index in the future is unknown, the first adjustment payments displayed are based on the current index plus the margin (fully indexed rate) as of the effective date above.

Jumbo Adjustable Rate Mortgage Rates:

The following Adjustable Rate Mortgage rates are for loans over $453,100*

Apply Now ›
Term / Property Months Points Interest Rate APR** Initial/Annual/
Life Rate Change
Caps
Margin/Index ^Estimated
Monthly Payment
per $1,000^
Jumbo 5/1 ARM First 60
Next 300
0 4.125%
5.375%
4.96%
4.96%
2% / 2% / 5% 2.875% / 2.55% $4.85
$5.50
Jumbo 5/5 ARM First 60
Next 300
0 4.375%
5.750%
5.29%
5.29%
2% / 2% / 5% 2.875% / 2.87% $4.99
$5.72
Jumbo 7/1 ARM First 84
Next 276
0 4.250%
5.375%
4.91%
4.91%
5% / 2% / 5% 2.875% / 2.55% $4.92
$5.47
Jumbo 10/1 ARM First 120
Next 240
0 4.375%
5.375%
4.82%
4.82%
5% / 2% / 5% 2.875% / 2.55% $4.99
$5.43

^Estimated Monthly Payment per $1000 – Loan principal and interest. If an escrow account for taxes and insurance is required, total monthly payment will be higher. The stated amount per $1,000 is based on the fixed rate period and the payment will likely increase after that period of time.

*Rates are effective  and are subject to change at any time, and may increase. Rates locked in today for 60 days have an expiration date of . Rates apply to loans larger than $453,100 (also known as "jumbo mortgages"). Further restrictions apply for loan amounts over $453,100 such as credit score, Loan to Value, etc.

**APR – Annual Percentage Rate. Please note that APR may increase after consummation.

All rates are based upon a 30-year term, owner occupied, and up to 60% of home value.

Rates and Fees disclosed are for loans that meet Secondary Mortgage Market underwriting standards; additional rate and fees may apply for loans outside of those guidelines.

Rate Change Caps – This is the maximum amount interest rates on Adjustable Rate Loans can change up or down. The first number is the amount they can change up or down on the first adjustment date. The second number is the amount they can change each subsequent year on the anniversary date. The third number is the maximum total change, up or down, over the life of the loan. Since the index in the future is unknown, the first adjustment payments displayed are based on the current index plus the margin (fully indexed rate) as of the effective date above.

Fees & Closing Costs



Mortgage Application Fee

$300

Rate Lock Fee

FREE

Approximate Closing Cost1

not including points

$1,900 - $2,000

(per $100,000)2

1 - Private Mortgage Insurance is also required if the loan to value is greater than 80%. The "Loan to Value" is the total loan amount divided by the value of your property. The value of the property is the lesser of either the purchase price or appraised value. Secondary Market Delivery Fees may be applicable in addition to the Approximate Closing Costs.

2 - Depends upon the state you are purchasing your home in. Fees may increase based on credit score, down payment, purpose of loan, subordinate financing and property type. Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.


4 out of 5 stars filled

DCU Members rated Adjustable Rate Mortgages 3.7 out of 5 stars

Here's what they're saying:

  • Large quote symbol
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    Quick and Easy

    I financed my home with a 5/1 ARM. It took just 44 days from my initial online application to closing the loan. The process was easy, and we got a great rate.

    ~ Lilly1
    Westborough, MA

  • Large quote symbol
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    Working with DCU was easy!

    Working with DCU was the easiest part of the whole process. They made me feel like I was the only member they were working with. They never made me feel rushed or dumb when I asked a question that I didn't know the answer to. I would recommend DCU to anyone that is looking for a new home.

    ~ Baker123
    Lunenburg, MA

  • Large quote symbol
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    Mortgage process was easy and fast!

    DCU has the easiest and best mortgage application process I have ever seen or used. You made it so easy to apply and send information required for my mortgage. I would recommend DCU to anyone looking for a mortgage.

    ~ Sawntrs
    Nashua, NH

Previous videos Next videos
ARMs - Adjustable Rate Mortgages is rated 3.7 out of 5 by 71.
Rated 5 out of 5 by from Simple Mortgage process Amazing service, i was working with an Loan office who had wonderful experience and great knowledge on the DCU products and she helped me a lot in making my process so simple. Thank you DCU for such a wonderful experience, am will give a Five Start Rating *****
Date published: 2018-02-28
Rated 5 out of 5 by from Awesome experience Thanks to Milton Webbe and Kathy, it was a very good experience and am happy to work with DCU
Date published: 2017-07-01
Rated 5 out of 5 by from New Home Owner Working with DCU was the easiest part of the whole process. They were so patient with how long everything took on our side (The town took a long time to approve paperwork) Their response time was amazing. They made me feel like I was the only member they were working with. They never made me feel rushed or dumb when I asked a question I didn't know the answer to. I would recommend DCU to anyone that is looking for a new home.
Date published: 2016-10-31
Rated 5 out of 5 by from Mortgage Process was easy and fast! DCU has the easiest and best mortgage application process I have ever seen or used. You made it so easy to apply and send information required for my mortgage. Sonya and Ben were more than helpful in processing my mortgage. I would recommend DCU to anyone looking for a mortgage.
Date published: 2016-02-16
Rated 5 out of 5 by from Attractive Rate, but not the APR Easy, and streamlined process. Attractive interest rate, but the APR is not.
Date published: 2015-09-19
Rated 5 out of 5 by from Just got a 10 year ARM from DCU for excellent interest rate. I had been a DCU member for over 17 years and am very pleased with their products and service.
Date published: 2015-06-28
Rated 5 out of 5 by from Fantastic service Mortgage representatives exceptional. Valerie and Ronel. Could not be more pleased with their support.
Date published: 2015-03-30
Rated 5 out of 5 by from Excellent Product & Service I have been a DCU member for the past 12 years and recently I re-financed my mortgage with DCU. I received exceptional service throughout the course of my refinance! From the start of my application till the end, everything was taken care of by the DCU associates and I really appreciate the services provided by DCU. I want to thank the associates personally. I strongly recommend DCU for those who want to buy or refinance their house. Thanks and Regards Sampath
Date published: 2013-05-11
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What is the procedure for a mortgage payment adjustment if I make a large principal reduction?

Asked by: DCU Member
Once the principal reduction has been applied to the mortgage, you can call 508.263.6700 and request a mortgage payment adjustment. A member of the mortgage servicing team will prepare the necessary paper work and mail it out to you. Once the document has been signed and returned to DCU, the scheduled payment will be reduced to reflect the payment shown on the mortgage payment adjustment documentation.
Answered by: DCU Staff
Date published: 2013-10-23

When can I waive my PMI (Private Mortgage Insurance) on my first mortgage?

Asked by: DCU Member
PMI (Private Mortgage Insurance) automatically waives at 78% Loan to Value of the original value. A member can request that PMI be waived when the loan reaches 80% Loan to Value. The member's loan has to be in good standing for the last two years, and DCU would require an appraisal at the borrower's expense to verify the current property value has not declined. Please contact us for further information and assistance.
Answered by: DCU
Date published: 2013-10-23

If I lock my rate on my mortgage application and the current market rates go down, can I change the locked rate to the lower rate?

Asked by: DCU Member
No, once the rate is locked, it is locked for a 60-day period. If the applicant withdraws and re-applies within 60 days, they will receive the higher of the original rate lock or the current market rate.
Answered by: DCU Staff
Date published: 2018-03-19

Does DCU offer investment property loans?

Asked by: DCU Member
We do. For further details, please call our Information Center at 800.328.8797, option 7. To apply, please call 800.328.8797, option 3.
Answered by: DCU Staff
Date published: 2013-10-23

Why did my mortgage payment go up?

Asked by: DCU Member
This is usually due to a recent escrow analysis. When an annual escrow analysis is prepared it is based on the tax payments made over the previous 12 months, so if your taxes increase during the next 12 months DCU will pay your taxes even if you do not have enough in your escrow account at the time. When the next annual analysis is prepared your payment will be adjusted to reimburse your escrow account for any shortage that may have occurred over the past 12 months.
Answered by: DCU Staff
Date published: 2013-10-23
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