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Abbott Laboratories Employees Credit Union

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Adjustable Rate Mortgages

Young woman with moving boxes, Adjustable Rate Mortgage

Interest rates can change at any time.

Take advantage of ALEC's low home rates today.

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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

Ready to buy a home?

ALEC makes it easy to apply for a mortgage loan.* You can visit an ALEC Service Center or contact a Mortgage Loan Representative.

View our current rates.
Account Type Loan Term APR* as low as
Mortgages - Daily Quote

*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.


* All loans subject to approval.

View a complete list of NMLS numbers.