adjustable rate
mortgages
A mortgage that moves with you.
start smart with your rate.
Lock in a low fixed interest 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 the life of the loan.
ARMs are a popular type of mortgage 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. ARMs are different from fixed rate mortgages. After the initial interest rate period, you’ll pay a variable rate that is tied to a specific financial index plus a margin. The interest rate adjusts semi-annually for the remainder of your loan term.
Benefits of an adjustable rate mortgage include:
Low Fixed Rate for Initial Term
Then, a variable mortgage rate that adjusts periodically for the remainder of the term
Multiple Terms Available1
Fixed-period ARMs of 5, 7, and 10 years
No Prepayment Penalties
Don’t pay fees for paying your mortgage ahead of schedule
Jumbo ARMs Available
Afford a higher-priced home with manageable initial payments
When you’re ready, so are we.
Want more information? Fill out the form and select which option you're interested in or submit any questions you have. An ALEC loan representative will then contact you to provide knowledgeable answers and assist with your loan application process.
real estate center
With ALEC's HomeAdvantage program, connect with top agents, who are here to help you find your dream home3. Plus, receive a cash reward just for buying or selling a home4. Best of all, the program is free for all members to use.
Use our calculator to see how ALEC can save you money1
Applying Is Quick and Easy!
Step | Apply OnlineStart a new application, and begin filling in information. Revisit it later and finish it at your convenience. |
Step | Sign Your LoanAgree to the loan amount, rates, and terms. |
Step | Begin Your Fixed Rate PeriodWhether it’s a 5, 7, or 10 year ARM, you’ll begin paying your fixed rate before switching to variable. |
ALEC Adjustable Rate Mortgage FAQs
Yes, applying for a mortgage loan before you find a home is actually an excellent idea. When you apply for a mortgage before you’ve found a property, ALEC issues an approval subject to you finding a home to purchase, instantly issuing a pre-approval letter.
With a preapproval letter, real estate brokers and sellers will know that you are dependable as a qualified buyer. Being pre-approved for a mortgage can give more weight when you put in an offer on a house.
Once you find the right home for you, all you have to do is call an ALEC Mortgage Loan Officer, and it’s time to complete your application. You can lock in your great rate, any accompanying fees and closing costs, and we’re ready to complete the processing of your request.
There aren’t any up-front application fees associated with ALEC online mortgage applications.
Yes, you need to be a member to qualify for our competitive interest rates and other member benefits. Once you’ve determined that you meet our eligibility requirements, you can apply to join online in a matter of minutes! Do you have a family member or know a co-worker who would like to enjoy our great rates? You can refer them for a membership.
You can be one of the over 32,000 members of the ALEC family. We make it easy for you, even providing a switch kit to help you bring over your accounts from your previous financial institution. For our new members, there is a New Member Center to help you get started, learn about our products and services, and access useful resources.
The better your credit score, the better your interest rates, which can mean more affordable monthly payments. If you want to get in better financial shape before you apply for a mortgage, ALEC can help. See our financial education resources for building your credit.
We also offer Select™ Visa® Credit Cards that come with low spending limits in order to help users establish and build credit. They come with great ALEC rates that all of our members enjoy!
With a Savings Secured Loan, you can use your savings as collateral and build your credit with a fixed-rate loan and flexible terms.
Other Mortgage and Equity Products
Have questions? We're here to help.
Are you looking for a helpful, step-by-step guide to buying a home? The Consumer Financial Protection Bureau has created Your Home Loan Toolkit. This booklet can help you make better choices on your journey to homeownership.
Try our Adjustable Mortgage Calculator to help determine what your payments might be
NMLS# 421478. View a complete list of all other NMLS numbers.