Adjustable Rate Mortgages
*Rates are based on an evaluation of credit history, loan-to-value, and loan term, so your rate may differ.
For primary residences and second homes only. Adjustable Rate Mortgages are variable and your annual percentage rate may increase after the original fixed rate period. The 2yr ARM is available for primary residences only. Other ARM options are available, including interest-only payment options, except for the 2yr ARM. The 2yr ARM requires a 0.75% loan origination fee. All other rates quoted above require a 1% loan origination fee. The origination may be waived for a 0.25% increase in the interest rate. For 3/1 and 5/1 ARM loans, other ARM options are available, including interest-only payment options. Regardless of the loan amount, mortgage insurance is required if LTV exceeds 80%. For 2/2, 3/5, 5/5, and all Jumbo ARM loans, mortgage insurance is not required. The minimum down payment for a two-unit property is 10%.
Mortgage Loan Payment Example
$200,000 mortgage for 30 years at 5.875% (6.950% APR) will result in a monthly payment of $1,183.08. For a 5/1 ARM, the rate will adjust after 5 years and the total interest paid over 5 years will be $56,803.42. Taxes and insurance not included, therefore the actual payment obligation will be greater.
INFORMATION APPLICABLE TO ALL MORTGAGE LOANS
Rates, discount points, and terms are based on an evaluation of each member's credit history, loan-to-value (LTV), occupancy, payment type, loan amount, and loan purpose, so your rate and terms may differ. All loans are subject to credit approval. Questions? Please contact Navy Federal at 1-888-842-6328 or visit navyfederal.org.
Navy Federal also offers home loans for investment properties. When reviewing quotes from other lenders, make certain you obtain the discount points and any origination fees for comparison with Navy Federal's rates. APRs reflect down payment/equity, unless otherwise noted.
Conforming Loans: Loan amounts up to $453,100. In AK and HI, the Conforming loan limit is $679,650. Jumbo Loans: Loan amounts greater than $453,100. The Jumbo rates quoted above are for loan amounts above $453,100 up to $2,000,000. Jumbo HomeBuyers Choice loans are available for loan amounts above $453,100 up to $1,000,000.
Two Unit Properties
The minimum down payment for a two-family property is 20%.
Conforming loan limit for two-family properties is $580,150. In Alaska and Hawaii, the Conforming loan limit for two-family properties is $870,225.
Any refinance mortgage where the proceeds will be used to pay any debt other than debt used in the purchase of the home is considered a cash-out refinance. Additional discount points will apply to cash-out loans, which are based on credit history and loan-to-value. Cash-Out Refinance is not allowed on Interest-Only Conforming, Interest-Only Super Conforming, and Choice products.
Loans with subordinate financing and loans secured by condominium properties may require additional discount points. Conforming loans secured by 2 unit properties or manufactured homes are subject to an additional 1.00% discount point.
Rate Lock Policy
- The Standard Price Lock Commitment for Purchase Loans is 60 days at no additional cost
- The Extended Price Lock Commitments for Purchase Loans
- 90 days - additional 1/8 discount point or 1/8% in rate
- 120 days - additional 1/4 discount point or 1/8% in rate
- 180 days - additional 1 discount point or 1/4% in rate
- The Float to Lock Option for Purchase Loans - If you select the Float to Lock Commitment, it means that you want to allow the interest rate and/or discount points to float with the market. You must lock in your interest rate and/or discount points at least fourteen (14) calendar days prior to settlement/closing.
- The Freedom Lock Option for Purchase Loans
This special Freedom Lock option is a limited-time offer, effective June 3, 2011, and subject to change at any time. Offer is available for new applications on purchase loans only at no additional fee, with a maximum interest rate reduction of up to 0.25%. You will have the opportunity to re-lock one time if rates improve. You must contact your loan officer to re-lock a minimum of fourteen (14) calendar days prior to settlement/closing, and your loan must close within 60 days of initial lock.
The Standard Price Lock Commitment for refinance loans is sixty (60) days from the lock date. On VA and FHA loans, the Standard Lock commitment is sixty (60) days from the lock date.