Main Content
Adjustable-Rate Mortgage Loans
Adjustable-Rate Mortgage Loans
Achieve your goals with a lower fixed rate and payment at the start of your loan term.
APPLY NOW
Features of a Topside FCU Adjustable-Rate Mortgage (ARM) Loan
Lower APR to Start Your Loan
The initial rate you get for an ARM is likely lower than for a fixed-rate loan.
Short Term Advantages
Your lower rate and payment are fixed for the first five years.
Adjustments May Go Up or Down
When your rate adjusts with the markets, it may drop and save you money.
Expert Advice and Servicing
Topside has teamed up with CUMA to provide guidance and servicing.
A Quick Explainer on Adjustable-Rate Mortgage Loans
An ARM loan lets you take advantage of a lower starting rate and lower monthly payment that's fixed for the initial period of your loan.
- Get a competitive APR to kickstart your loan term.
- A 5/5 ARM means your rate and payment are fixed for five years then adjust every five years.
- When your rate adjusts, it may go up or down depending on the markets.
- ARMs suit people who are planning to move, sell, or refinance in the short term.
- ARMs are also useful if you know your income will rise in future.
- You can choose a 5/5, 15/15, 3/1, 5/1, or 10/1 ARM.
- The total loan term is 30 years.
- Down payments start as low as TBC.
- You'll need to pay private mortgage insurance (PMI) if your down payment is under 20%.
- You can cancel PMI when you reach 20% equity.
- Easily apply online and use free automatic transfer from your Topside accounts.
We've partnered with Credit Union Mortgage Association (CUMA) to bring you expert advice and ongoing loan servicing for your ARM loan.
Apply Now
★★★★★
“Top level credit union. PERFECT size, large enough to offer competitive loan rates, but small enough to still care about members!”
Ponderscythe
Our Adjustable-Rate Mortgage Loans Offer These Benefits
Competitive APR
The initial interest rate you get for your ARM loan is likely lower than for a fixed-rate mortgage so you can buy sooner.
Purchase Calculators
Use our range of mortgage calculators to help you find a home loan you can comfortably afford.
Friendly Consultants
Our mortgage experts will give you the information you need to enjoy the home buying process.
Easy Payments
Simply transfer funds from your Topside Checking or Savings account free of charge.
Next Steps to Secure Your Adjustable-Rate Mortgage Loan:
Adjustable-Rate Mortgage (ARM) Loan FAQs
- What is an adjustable-rate mortgage (ARM) loan?
An adjustable-rate mortgage offers a starting interest rate that is fixed for a certain amount of time, and then the rate adjusts on a schedule through the remaining loan term. For example, a 5/5 ARM means the initial rate is fixed for five years and then adjusts every five years after that.
When your rate adjusts, it may go up or down so your monthly payment may also go up or down. The amount it adjusts will be based on a market index chosen by your lender and will reflect current market interest rates.
To protect you from large changes in your rate and payment, there is a:
- 2% cap on how much your rate can adjust the first time (after the first five years)
- 2% cap on much your rate can adjust each time on the schedule (every five years)
- 5% lifetime cap on how much your rate can adjust in total over the 30-year loan term
- What are the advantages of an adjustable-rate mortgage?
An adjustable-rate mortgage is a great choice in a few situations, especially if you plan to own your home for a short time:
- When market rates are high, the starting rate for an ARM is usually lower than the rate offered for a conventional fixed-rate 30-year home loan so you can afford a mortgage more easily.
- If you're planning to sell your home, move, or refinance in the short-term, then you can enjoy the low starting rate while you're in your home and you won't be affected by the future adjustments.
- This is often useful for members of the military, who may move towns frequently.
- If you know your income will rise in future then you'll easily be able to manage any potential increase in your rate and payment, while saving more money in the short term.
- If you stay in your home long term and market rates go down in future, your rate and payment will also go down without the need for a refinance.
- What initial rate will I get for the fixed period of my adjustable-rate mortgage?
You'll get a competitive APR based on your credit score, debt-to-income (DTI) ratio, and overall financial situation. Higher scores get lower rates.
- What's the difference between APR and an interest rate?
The annual percentage rate (APR) includes any points, fees, or other charges you pay to get the loan while the interest rate does not.
- What does it mean to lock in my rate?
Locking in your rate means your initial ARM interest rate won’t change between the offer and closing as long as you close within the specified time frame and do not make changes to your application.
- Why is Topside able to offer competitive rates?
We keep our overhead costs to a minimum and our not-for-profit business model means we can pass revenue back to members through lower rates and higher yields.
- How can I find out how much house I can afford?
For a quick estimate you can use your online calculator. Our mortgage lending team will be able to give you the best idea of this number when they know more about your finances and lifestyle.
- Can I calculate my mortgage rate and payment ahead of time?
Yes, you can use our mortgage calculator to get an estimate of what your mortgage payment will be. Please remember that there are many factors in a mortgage and mortgage payment and any advanced calculations are just estimates.
- How can I apply for a home loan?
You can apply online here or by calling 855-913-6193 to speak with a mortgage professional.
- How long does the application and approval process take?
The application itself takes 15 to 20 minutes. You can talk to a member of our mortgage team to find out when you're likely to get a response on your application.
- I want to buy a home, but I want to wait until I can get the best rates I can. How can I know when rates are right where I want them?
You can talk to a member of our mortgage team to find out if now is the best time for you to purchase a home.
- What if I haven’t picked out a house yet? Should I still apply?
You should apply to be pre-approved when you’re ready to start shopping. Knowing how much you’ve been pre-approved for will help you in your search for a new home. Pre-approvals last for three months and can be re-approved if you are still shopping.
- Why is it smart to get pre-approved for a mortgage?
Getting pre-approved helps you understand exactly how much home you can afford which aids in narrowing down your home search and gives you more power as a buyer.
- What is the difference between pre-qualification and pre-approval?
A pre-qualification is based on the information you submit and is not a firm offer. A pre-approval is based on verified data (like a credit check).
- What might be included in my closing costs?
Your closing costs may include appraisal fees, title searches, title insurance, origination fees, lender fees, taxes, etc.
- Who services Topside loans?
To provide the best support possible, we have partnered with Credit Union Mortgage Association (CUMA), an organization that provides mortgage origination, processing, and servicing services to members of credit unions just like ours.
The CUMA staff is eager to support your mortgage needs and operates on Topside’s behalf to make your mortgage process as smooth as possible.
Worried that your loan is not really with the Credit Union? Don’t be – the Credit Union is ready to be your lender, relying on CUMA’s expertise to service your loan post-closing.
- How can I make mortgage payments?
Your Topside mortgage account and details will be available on the CUMA site and you make payments online here.
- What sort of financial documents will I need when applying for a mortgage?
We worked with CUMA to put a list together for you!
- Does Topside offer any additional resources to help borrowers understand the mortgage process?
- Do I need to join Topside Federal Credit Union to qualify for a mortgage?
Yes, you do need to become a member. You can find out if you're eligible and then we can help you with your membership application and give you advice about your home loan at the same time!
More Handy Home Loan Options from Topside FCU
Fixed-Rate Loans
Lock in a competitive interest rate and then enjoy steady payments for your entire loan term so budgeting is easy. You may choose to refinance your mortgage for a lower rate in future if market rates drop.
Learn More
FHA Loans
Enjoy easier qualifying, a low down payment, and lower mortgage insurance than conventional loans. First-time and repeat home buyers may be eligible if they meet credit and income restrictions.
Learn More
Home Equity Loans and Lines of Credit
Pay for renovations, weddings, college, debt consolidation, and anything else you want through a low-interest lump sum loan or a revolving line of credit to use as needed.
Learn More
*APR = Annual Percentage Rate.
