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Lock in a low fixed rate for the first part of your loan. Then enjoy a competitive variable rate thereafter.
With an adjustable rate mortgage (ARM) from ALEC, you can take advantage of a predictable fixed rate for a specified term at the beginning of your loan. This can free up more cash you can save, or use to improve your home.
ARMs are a popular loan choice with buyers who think there’s a good chance they may sell their home within the initial fixed-rate period, when the rate is often its lowest.
After the initial fixed-rate period, you’ll pay a variable rate that is tied to a specific financial index plus a margin, and is annually adjusted.
Examples of ALEC adjustable rate loans:
5/1 ARM LIBOR
After the initial 5-year fixed-rate period, the first rate adjustment, based on the Libor index, could increase up to 2% or decline up to 2%. In subsequent years, the rate can only adjust up or down a maximum of 2% annually. The lifetime cap of the loan cannot vary more than 6% from the initial rate. The loan rate will never fall below the 2.25% margin.
7/1 ARM LIBOR
After the initial 7-year fixed-rate period, the first rate adjustment, based on the Libor index, could increase up to 5% or decline up to 5%. In subsequent years, the rate can only adjust up or down a maximum of 2% annually. The lifetime cap of the loan cannot vary more than 5% from the initial rate. The loan rate will never fall below the 2.25% margin.
Features of ALEC Adjustable Rate Mortgages:
- Low fixed rate for the initial term, then becomes a variable rate that adjusts periodically for the remainder of the term
- Fixed-period ARMs of 3, 5 7 and 10 years
- No prepayment penalties
- Jumbo ARMs available
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*All loans subject to approval.
Interested in saving more money? If you’re currently paying a higher rate on a loan at another financial institution, consider refinancing it.
This convenient loan comparison tool makes it easy to determine whether refinancing with ALEC makes sense for you.
Loan Saver® allows you to enter your current information, and then shows you how much money you could save with a loan from us.
For a complete list of NMLS numbers, please click here.