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Adjustable Rate Mortgages (ARMs)

An adjustable rate option would be a good option to choose if you plan on staying in your home for less than 10 years. Here at MSDFCU we understand everyone's home buying needs and situations are unique. We offer you a choice of 7 or 5-year adjustable rate terms. In each of those terms we will also offer you a choice of different rates. With a ARM your initial rate may be lower than the fixed rate options. You can choose an adjustable rate whether you are borrowing for a primary residence, a vacation home or if you are refinancing your current home.

An adjustable rate mortgage has a monthly payment that may change over the term of the loan. With our Adjustable Rate Mortgage, your payment won't change for the initial term of the loan and then can change every six months based on market conditions, subject to the specific terms of the loan.


  • Loan Term - 360 months
  • Initial Fixed Period - The initial rate will be fixed for this period. After this period, the interest rate will be adjusted at the frequency noted as the Subsequent Adjustment Period.
  • Subsequent Adjustment Period - After the initial fixed period, the interest rate will be adjusted each time this number of months has passed.
  • Initial Adjustment Cap - The maximum amount the rate may increase or decrease after the Initial Fixed Period.
  • Periodic Adjustment Cap - The maximum amount the rate may increase or decrease after each Subsequent Adjustment Period.
  • Maximum Interest Rate - The maximum interest rate you may be required to pay.
  • Index - A published interest rate used to establish the interest rate offered on an Adjustable Rate Mortgage (ARM). We use the weekly Secure Overnight Financing Rate (SOFR).
  • Margin - The amount that is added to the Index to determine the rate at each adjustment (subject to any adjustment caps or floors).