Adjustable Rate Mortgages

The credit union offers 5-Year Adjustable Rate Mortgage (ARM) products to purchase or refinance your primary residence, second home, and rental property for members who reside in and for properties located in North Carolina only. The maximum loan amount and interest rate depends on many factors including the purpose of the loan, the type of loan, number of dwelling units and occupancy status. Funds are collected with each payment, in addition to your principal and interest payment, to allow for the disbursement of the estimated annual tax and insurance premiums that will be due. These funds are placed in an escrow account until needed and earn dividends equal to the share account rate. Payments may be made directly to the credit union, through Payroll Deduction or Funds Transfer.

Because the interest rate may only be adjusted every five years, this product offers additional protection against rising rates1. The rate may not change by more than 2% every five years or 8% over the life of the loan.

5-Year Adjustable Rate Mortgage

Payment Example

Current Interest Rate: %
Fully Indexed Interest Rate: %

Months
1 - 60
Interest Rate
% (% APR)
Estimated Principal &
Interest Monthly Payment
$
Months
61 - 360
Interest Rate
% (% APR)
Estimated Principal &
Interest Monthly Payment
$

The estimated monthly payment is based on a loan amount of $150,000 with an initial interest rate of % (% APR) for the first 5 years of a 30-year loan term. Future rates are subject to change, so the rates for months 61-360 are estimated by adding the margin to the current index rate. Future rates and payments determined based on adding a margin of 3.00% to the index (5-Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 5.250%. The index used in the above calculations is %.

This is a variable rate loan, and the interest rate can increase over the life of the loan. GKCU ARMs can increase or decrease a maximum of 2% every 60 months up to 8% over your initial rate during the life of the loan.

Taxes and insurance are not included in the estimated monthly payment amount. Your actual monthly payment will be greater.

Contact our local branch for additional information.

Payment Example

Current Interest Rate: %
Fully Indexed Interest Rate: %

Months
1 - 60
Interest Rate
% (% APR)
Estimated Principal &
Interest Monthly Payment
$
Months
61 - 360
Interest Rate
% (% APR)
Estimated Principal &
Interest Monthly Payment
$

The estimated monthly payment is based on a loan amount of $150,000 with an initial interest rate of % (% APR) for the first 5 years of a 30-year loan term. Future rates are subject to change, so the rates for months 61-360 are estimated by adding the margin to the current index rate. Future rates and payments determined based on adding a margin of 3.50% to the index (5-Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 5.75%. The index used in the above calculations is %.

This is a variable rate loan, and the interest rate can increase over the life of the loan. GKCU ARMs can increase or decrease a maximum of 2% every 60 months up to 8% over your initial rate during the life of the loan.

Taxes and insurance are not included in the estimated monthly payment amount. Your actual monthly payment will be greater.

Contact our local branch for additional information.

Payment Example

Current Interest Rate: %
Fully Indexed Interest Rate:%

Months
1 - 60
Interest Rate
% (% APR)
Estimated Principal &
Interest Monthly Payment
$
Months
61 - 360
Interest Rate
% (% APR)
Estimated Principal &
Interest Monthly Payment
$

The estimated monthly payment is based on a loan amount of $150,000 with an initial interest rate of % (% APR) for the first 5 years of a 30-year loan term. Future rates are subject to change, so the rates for months 61-360 are estimated by adding the margin to the current index rate. Future rates and payments determined based on adding a margin of 4.25% to the index (5-Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 7.00%. The index used in the above calculations is %.

This is a variable rate loan, and the interest rate can increase over the life of the loan. GKCU ARMs can increase or decrease a maximum of 2% every 60 months up to 8% over your initial rate during the life of the loan.

Taxes and insurance are not included in the estimated monthly payment amount. Your actual monthly payment will be greater.

Contact our local branch for additional information.

  • Maximum term of 30 years
  • Origination fee 1.00% of loan amount
  • No application fees or credit report fees
  • Private mortgage insurance is not required
  • Home inspections required on all loans with a loan-to-value greater than 80%. Member is responsible for inspections costs.
  • Property must be located in North Carolina
  • Maximum loan amount of $225,000
  • For purchases, maximum financing and loan-to-value financing tier determined based on the lesser of the sales price or appraised value. Member is responsible for appraisal cost.
  • Up to 95% financing3 available for purchases and refinances4 of primary residences only with "no cash out". Cash out is defined as any funds that exceed the balances owed on the first or second mortgages being paid off.
  • Up to 80% financing for purchases and refinances4 of second homes. Only one second home per member is eligible for financing
  • Up to 80% financing for purchase of a rental property or for a no cash-out refinance4 of a rental property; further limited to 65% loan-to-value for cash-out refinances. Each member may only have one rental property financed.
  • Cash out refinances4 are allowed on primary and second homes, not to exceed 80% loan-to-value.
  • Maximum of three properties may be financed with the credit union; with one primary, one rental and one second home.
  • Only one mortgage loan may be greater than an 80% loan to value (LTV)
  • Homeowners’ counseling is always required unless the members have owned a home in the preceding 24 months
  • Manufactured homes can typically serve as collateral but must be the primary residence of the borrower and will be further limited by term and product
  • Initial rates subject to change daily
1 Future interest rate changes will be determined based on the five-year Constant Maturity Treasury (CMT) yield.
2 APR = Annual Percentage Rate. APR is your cost over the loan term expressed as a rate. This is not your interest rate.
3 For a purchase, the member must always contribute a down payment of the greater of either: (i) $5,000 or (ii) 5% of the lesser of the purchase price or appraised value.
4 Cash out is defined as any funds that exceed the balances owed on the first and/or second mortgages being paid off, plus closing costs.