Benefits of ARMs
If you are looking for a lower initial payment and are less concerned about your payment increasing in future years, take a look at our adjustable rate options.
Providing Rhode Island & MA with Adjustable Rate Mortgages
5/1 Adjustable Rate Mortgage
A convenient mortgage for buyers looking for a lower initial payment for the first five years of the mortgage term. After the five year period, the rate will be adjusted once per year.
7/1 Adjustable Rate Mortgage
A great mortgage option for buyers who would like to lock in a lower payment for the first seven years of their mortgage term. After the seven year period, the rate will be adjusted once per year.
10/1 Adjustable Rate Mortgage
A perfect mortgage for buyers looking for a lower initial payment for ten years of their mortgage term. After the ten year period, the rate will be adjusted once per year.
Featured Mortgage
Adjustable Rate
| Product | Interest Rate | Term | Points | Monthly Payment per $100,000 | APR** |
|---|---|---|---|---|---|
| 5/1 ARM* | 5.375% / 5.375%* | Months 1-60 / Months 61-360 | 0 | $559.97 | 6.87% |
| 7/1 ARM* | 5.375% / 5.375%* | Months 1-84 / Months 85-360 | 0 | $559.97 | 6.62% |
| 10/1 ARM** | 5.75% / 5.75%** | Months 1-120 / Months121-360 | 0 | $583.57 | 6.55% |
DISCLOSURES
Interest Rates are subject to change without notice.
*Annual Percentage Rate (APR) subject to change without notice. Advertised APR based on credit score of 740 or higher. All payments quoted with beginning balance of $100,000. 5/1, 7/1 Adjustable Caps 2% – 6%. Margin 2.50% and current index 4.34%. **The second payment stream will be based on fully indexed rate or the floor rate if the floor rate is greater than the fully indexed rate. Escrow is required for Loan to Value (LTV) over 80%. The monthly payments are disclosed per $100,000. Rates do not take into consideration possible adjustments based on member’s credit score, loan-to-value, combined loan-to-value, subordinate financing, occupancy, appraised value, down payment, property type, property use and loan purpose. Payments do not include taxes or insurance and actual payment may be greater. Property insurance (and flood insurance if applicable) required. APR is accurate as of the effective date. The APR is subject to increase after closing. An LTV greater than 80% requires Private Mortgage Insurance (PMI) which would increase your monthly payment and APR. Other ARM products may be available.
**Annual Percentage Rate (APR) subject to change without notice. Advertised APR based on credit score of 740 or higher. All payments quoted with beginning balance of $100,000. 10/1 Adjustable Caps 5% after initial 10 years, then 2%-5%. Margin 2.50% and current index 4.34%. **The second payment stream will be based on fully indexed rate or the floor rate if the floor rate is greater than the fully indexed rate. Escrow is required for Loan to Value (LTV) over 80%. The monthly payments are disclosed per $100,000. Rates do not take into consideration possible adjustments based on member’s credit score, loan-to-value, combined loan-to-value, subordinate financing, occupancy, appraised value, down payment, property type, property use and loan purpose. Payments do not include taxes or insurance and actual payment may be greater. Property insurance (and flood insurance if applicable) required. APR is accurate as of the effective date. The APR is subject to increase after closing. An LTV greater than 80% requires Private Mortgage Insurance (PMI) which would increase your monthly payment and APR. Other ARM products may be available.
Frequently Asked Questions
Typically, the Mortgage process takes from 45 to 60 days for purchase and refinance loans. The closing date on a purchase transaction is dictated by the purchase and sale agreement.
First and foremost People’s does not collect any fees for you to apply. Closing costs vary depending on the type of mortgage and the amount of the mortgage you apply for, and will vary based on your situation. Fees are broken down into categories. For example, fees may be charged by outside venders for the Credit Report, Appraisal, Attorney Fee, Tax Service, or a Flood Certificate. There are also fees collected by the town such as recording fees and taxes. The only fees collected by People’s Credit Union are for underwriting the loan.
People’s Credit Union offers a full range of fixed and variable interest Mortgage Loans. Please visit our Mortgage page to learn more about our products and meet our Mortgage Lenders..
When you apply for a mortgage we must verify every statement made on the application relative to your income, debts, bank accounts, properties owned. We have a team of knowledgeable mortgage professionals that will help you every step of the way.
We do sell and underwrite to secondary market (Fannie Mae) guidelines. However, we will service your loans, so you will always pay your mortgage directly to us.