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Adjustable-Rate Mortgages

Don't let high interest rates delay your plans for homeownership

 
An Adjustable Rate Mortgage from Members Choice Credit Union offers lower starting rates so you can afford to buy a home sooner, and get more home for your budget. Our mortgage loan advisor will make your home buying experience easy and stress-free. 
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Affordable starting rate and payment

Get a lower APR compared to a fixed-rate loan and enjoy steady payments for 5, 7, or 10 years.
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Option to convert to fixed-rate

If you choose our FlexChoice Convertible Mortgage, you can switch to a fixed-rate loan after ONE year for no fees or refinancing costs.
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Local loan servicing and advice

We’ll never sell your loan and will service it locally through your entire term.

We have adjustable-rate mortgage options for all.

An ARM offers a low initial rate and likely more affordable mortgage payments than a comparable fixed-rate loan. We offer affordable 5-year ARM, 7-year ARM and 10-year ARM terms.


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FlexChoice Convertible Mortgage1

Allows you to lock in low rates by giving you the option to turn your ARM into a fixed-rate mortgage after the first year, without the expense or hassle of refinancing.

Traditional ARM2

Enjoy lower APR than fixed-rate mortgages, along with the confidence that your rate will not increase more than 1.00% annually after the initial term.
 
 

Compare Mortgage Home Loan Options
FlexChoice Adjustable-Rate Mortgage1
Traditional ARM2
Conventional Fixed-Rate3
Min FICO Score 720 620 620
Option to modify After one year, you can convert your FlexChoice adjustable-rate mortgage into a fixed-rate mortgage to lock in any future mortgage rate decrease – –
Loan Amounts $100,000 to $726,200 $50,000 to $726,200
Loan Terms 5, 7 or 10-year initial ARM terms available; 30-year maximum term 15/20/30-year fixed terms available
Rate Cap Low 1.00% annual rate increase maximum after the initial loan term. –

 
 

Get started with an estimated rate quote – No credit pull required

Fill out the short form below to get a call back from a Mortgage Loan Officer within the next business day.


Ready to get your mortgage loan started?

Start your Application Online

Apply by Phone

Call us at 281.754.1103 to start a new loan by phone


FAQs about Adjustable-Rate Mortgage (ARM) Loans

You may be hesitant to buy a home now with fixed rate mortgage rates on the rise. Fortunately, an ARM offers a lower starting rate, which is fixed for five, seven, or ten years. This means you pay less monthly interest than a conventional fixed-rate mortgage right now.

Not only will you save money but you can build home equity faster since you are paying more towards your loan principal and less on interest.

Yes, if you have a higher credit score (720+) and a lower debt-to-income (DTI) ratio, you have the option to select our FlexChoice Convertible Mortgage, allowing you to convert your ARM to a fixed-rate loan after one year, with no conversion fee. This is a great benefit if market rates drop in your favor at that time.

Your fixed-rate APR will be based on current market rates at the time you convert your loan.

This is a mortgage that is fixed at a lower than market rate (called the Start Rate) for a certain number of years, then adjusts each year after that for the term of the loan

  • The Adjustment Rate is tied to the One Year Treasury Constant Maturity Index plus a set margin. 
  • There is a cap on how low the rate can go, called a Floor Rate.
  • There is a cap on how high the rate can go, called the Ceiling Rate.
  • There is a rate adjustment cap of 1%.
  • We offer fixed periods of 5, 7, and 10 years.

Example of a Rate Adjustment:

  • If the current Mortgage Rate is 3.375%
  • And today’s One Year CMT Rate is 3.02%
  • The Margin is 2.25%
  • The new Adjusted Rate would be: 3.02 + 2.25 = 5.37

However, there is a rate adjustment cap of 1%, therefore the adjusted rate would be 4.375%.

Our promise is to provide a high level of service and work in your best interests:

  • We have personalized customer service that aims to meet your personal needs
  • Our member service team offers a local person to talk to and provide faster service
  • You're a member, not just a number
  • We try to make the home buying experience a great one – easy and stress-free
  • We’ll never sell your loan and will retain servicing for the life of the loan

Yes, applying for a mortgage loan before you find a home may be the best thing you could do.  When you apply in advance, you are issued a pre-approval letter subject to finding your new home. 

You can use the pre-approval letter to assure your real estate agent that you are a qualified buyer and look in the right price range to fit your budget. Having been pre-approved for a mortgage may also give more weight to any offer you make.

There is no fee to complete an online application for any of our loan products. If you are applying for a Mortgage (Purchase or Refinance), a non-refundable fee of $55.00 is collected when the Loan Officer pulls your credit report to begin the pre-approval/loan process.
 

There is no obligation to complete the mortgage or equity process once an application is completed.

There is no fee to modify your rate to a fixed rate after three years if you have selected the FlexChoice ARM option at the initiation of your mortgage.

The Loan Officer will interview you and analyze your completed application, your credit report, and an automated underwriting system to determine which documents we’ll need to process your application. During the processing and underwriting part of your loan, other documentation may be required for final approval.



More Mortgage FAQs


Mortgage Resource Center

Free Home Buying Guide

Get our guide for finding, buying and financing a new home for yourself or a family member  

“Your Home Loan Toolkit” can help you shop for a mortgage with confidence

Written by the Consumer Financial Protection Bureau (CFPB), this toolkit serves as a step-by-step guide to help you find your best mortgage.

Your Home Loan Toolkit Guide (PDF)

Disclosures

*APR = Annual Percentage Rate.


2FlexChoice Convertible Mortgage: Purchase for primary, second, and investment properties in Texas only. Manufactured homes and refinances not allowed. Minimum 720 FICO credit score required for FlexChoice option. Modification rates are based on the current market at the time of conversion. Must be in ARM product for a minimum of 3 years prior to modification. After 3 years you have the option to modify your loan after three years to a fixed-rate loan based on the current market rate at that time. No modification fee is charged. $100,000 minimum loan amount. $726,200 maximum loan amount. 1.00% annual rate increase maximum after the initial loan term. Rates shown are based on a $300,000 loan amount with a 740 FICO credit score.
2Adjustable-Rate Mortgage: Rates are issued daily. Please contact a Mortgage Loan Officer at 281.754.1103 for more information or get a Quick Rate Quote online. Purchase and Rate/Term Refinance for primary, second, and investment properties in Texas only. Manufactured homes and cash-out refinances not allowed. Minimum 620 credit score required. $100,000 minimum loan amount. $726,200 maximum loan amount. 1.00% annual rate increase maximum after the initial loan term.
3Conventional Fixed-Rate Mortgage: Rates are issued daily. Please contact a Mortgage Loan Officer at 281.754.1103 for more information or get a Quick Rate Quote online. Mortgage home loans are available on residential primary residences and second/vacation properties and investment properties located in Texas. Manufactured homes not allowed. Maximum combined loan to value on primary residences is 95%, on second/vacation homes is 90%, and on investment properties is 85%. $50,000 minimum loan amount. $726,200 maximum loan amount.



If not currently a Members Choice member, a $5 deposit is needed to establish membership. All memberships and lending products are subject to approval including credit approval.