Personal Loans Options | Freedom Credit Union
Adjustable-Rate Mortgage Benefits
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Lower Initial Rates
Start strong. Enjoy a discounted interest rate for the first few years, making your monthly payments more manageable.
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Savings When Rates Fall
Take advantage of market changes. Your adjustable-rate mortgage may allow lower payments if interest rates decrease.
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Customizable Terms
Choose the fixed period and adjustment schedule that fits your financial plan and lifestyle.
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Short-Term Savings
Keep more money in your budget during the early years, freeing up funds for other priorities like home improvements or family expenses.
Adjustable-Rate Home Loan Details
An adjustable-rate mortgage (ARM) offers a lower initial interest rate for a set period—commonly 5, 7, or 10 years—before adjusting annually based on market rates. This can make homeownership more affordable during the early years, giving you a financial head start.
At Freedom Credit Union, we help you plan for both short- and long-term goals with:
- Flexible ARM terms: 5/1, 7/1, or 10/1 ARMs for qualified applicants.
- Quick preapprovals so you can move fast when the right home comes along.
- Local loan decisions by people who know your community.
- Payment plan choices that fit your budget.
- Financing for primary or second homes and a First-Time Home Buyer Program.
As your needs evolve, you can refinance into a fixed-rate mortgage to lock in long-term stability or continue with your ARM to benefit from interest rate changes.
Adjustable-Rate Mortgage Resources
GreenPath Financial Wellness
Sound home financing is essential for your financial health. GreenPath provides HUD & NFCC-certified counselors who can help with your housing questions.
Loan Payment Protection
A mortgage is a major commitment, and Loan Payment Protection provides a safety net. It can forgive a portion or all of your loan payments if you become unable to make them for any reason.
TruStage™ Home Insurance
Protect your assets with TruStage™ Home Insurance. Benefit from exclusive access to outstanding home and auto insurance programs.
Fannie Mae Training and Education
Complete our free homebuyer course and pass a brief quiz to receive a certificate for your lender.
Monthly Payment Calculator
Curious about your estimated monthly mortgage payment? Find out how much your mortgage could affect your budget.
Flexible Rates, Flexible Homeownership: Get Started Now
Apply Online
Complete your loan application online. It’s quick and easy. There’s no need to visit a branch!
Application review
We’ll review your application and get back to you with a decision within just a few days.
Go househunting!!
Once you’re preapproved for financing, it’s time to find your dream home!
“I have been with several different banks and credit unions throughout the years for my personal account and business accounts. I switched over to Freedom because I wanted to work with a true local financial institution. It’s the best move I made.”
– Rich B., Bel Air, MD
Adjustable-Rate Mortgage FAQs
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An adjustable-rate mortgage (ARM) is a home loan with an interest rate that can change over time. Most ARMs start with an initial fixed rate for a set period. After that period ends, the rate adjusts periodically based on current market interest rates for the remainder of the loan term.
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Unlike a fixed-rate mortgage, an ARM’s interest rate changes at predetermined intervals after the initial fixed period. While the total loan term remains the same, your monthly payment may increase or decrease each time the rate adjusts.
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Most ARMs have a 30-year total term, though some run for 15 or 20 years. The initial fixed-rate period typically lasts 3, 5, 7, or 10 years. After that, the interest rate adjusts periodically, commonly every 6 months or once a year, until the loan is fully repaid.
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Adjustable-rate mortgage benefits include lower initial interest rates and reduced monthly payments compared with similar fixed-rate loans. This can make an ARM a more affordable way to enter homeownership, especially if you plan to sell or refinance before the rate adjusts.
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Yes. After the initial fixed period, your ARM interest rate may rise if market rates have increased since you borrowed. It’s also possible for your rate to decrease if prevailing rates drop.
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Yes. Most ARMs have caps on how much the interest rate can change at each adjustment and over the life of the loan. For example, Freedom Credit Union limits changes to no more than 2 percentage points per adjustment and a maximum of 5% over the life of the loan.
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To qualify for an adjustable-rate mortgage at Freedom Credit Union, you must be a member in good standing. Membership is open to anyone who lives, works, attends school, or volunteers in Bucks, Chester, Delaware, Montgomery, or Philadelphia Counties—or who is related to a current Freedom Credit Union member.
Other Loans Offered by Freedom Credit Union
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Home Equity Loans
Unlock your home’s value and access the funds you need. Our home equity loans offer competitive rates and flexible terms, so you can invest in what matters most—whether that’s home improvements, education, or major life expenses.
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First-Time Home Buyer
Get into your first home sooner with up to 100% financing and no private mortgage insurance. Enjoy the great rates and member-focused support that Freedom Credit Union is known for.
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Mortgage Loans
Turn your dream of homeownership into reality. Our mortgage loans combine competitive rates, flexible terms, and local expertise to help you find the right home and make it truly yours.
