ADJUSTABLE-RATE MORTGAGES with LOWER RATES
With a lower initial rate, ARMs make home ownership more affordable for many.
Available for both purchases and refinances, ARMs offer both a lower rate and payment.
Our mortgage professionals are dedicated to finding a home loan solution customized to fit your needs—finance today with the people you know and trust!
Safe & Smart
- ARMs can be refinanced at any time with no pre-payment penalty.
- Limits on rate adjustments after the initial fixed-rate period.
- A team of mortgage professionals committed to helping you choose the best product.
Perfect fit for those who:
- Want an initial lower monthly payment than a fixed rate typically offers.
- Plan to sell, pay off their mortgage or refinance within the initial fixed rate period.
- Think interest rates will go down in the future.
- Want to save money with a lower initial rate.
the First 5 Years
Financing
ADJUSTABLE-RATE MORTGAGE (ARM)
Rates effective October 16, 2024
| Loan Type | Term | Rate | APR* | Annual Cap | Lifetime Cap | |
|---|---|---|---|---|---|---|
| 5/1 ARM | 30 Year | 5.75% | 6.82% | 2.00% | 5.00% | |
|
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*Annual Percentage Rate. An Adjustable-Rate Mortgage (ARM) begins with a low fixed rate for the first 5 years (60 months), and then adjusts according to an index, plus a margin, every year thereafter, starting at the end of the 5th year (month 61). At each adjustment period, your new rate will be based on the current index plus a margin, and will not exceed the 2 percent adjustment cap. Your rate will never increase more than 5% from the initial rate.
APR advertised is based off the 30-day average SOFR index, as published by the Federal Reserve Bank of New York, and is current as of September 20, 2023. Rates vary, are subject to change and are based on individual creditworthiness.
5/1 ARM Payment Example: For a 30-year loan of $150,000, you would make 60 payments of $899.76 at 6.93% APR, followed by 300 payments based on the then current rate. Loan payments may increase and do not include taxes and insurance. Equal Housing Lender.
CALCULATE YOUR PAYMENT
Calculate your monthly payment by using the loan rates and terms above. It is helpful to remember the rate you may qualify for could be different depending on a variety of factors, including the term and your credit score.
Get Prepared to Buy Your House.
Credit Report
Your credit score is based upon your spending, payment, and credit history. It is represented by a number between 300 to 850. The higher your credit score is, the easier it can be to get approved for your mortgage.
How to get prepared: We recommend you get a free yearly credit report to learn what your credit score is before applying for your mortgage.
Job Stability
We prefer to see a pattern of proven income from employment stability.
How to get prepared: Try to apply for your home loan when you have been employed at your current job for at least two years. If it's less than that, don't worry as we look at your entire employment history during the mortgage approval process.
Down Payment
The initial money you pay on the total cost of your house is known as your down payment. At DuGood, you can get up to 95% Conventional financing, which means you must have at least 5% of the sales price as down payment.
How to get prepared: Take time to save your money before buying a home as a larger down payment can help save you thousands of dollars in the long run.
Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is calculated from how much of your total monthly income (before taxes are taken out) goes towards paying off your debt. This helps us to understand what percentage of your income will go towards your home loan.
Apply and get pre-approved.
It's smart to get pre-approved before you shop so you'll know exactly how much you can afford.
Pay by Mail
DuGood FCU
P.O. Box 12899
Beaumont, TX 77726
SEE WHAT OTHERS HAVE TO SAY
Meet Our Mortgage Team
Sandra Flanigan
Senior Mortgage Lender
(409) 726-2104
Email
Sandy Ferrell
Senior Mortgage Lender
(409) 726-2106
Email
Pauline Villarreal
Mortgage Lending Supervisor
(409) 726-2119
Email
Holly Clark
Mortgage Servicing Supervisor
(409) 726-2113
Email
Connie Tassin
Mortgage Loan Specialist
(409) 726-2111
Email
Charla Bailey
Mortgage Loan Specialist
(409) 726-2107
Email
Blake Worthey
Chief Lending Officer
(409) 241-2261
Email
Get answers to frequently asked questions
What is an Adjustable-Rate Mortgage (ARM)?
An Adjustable-Rate Mortgage (ARM) is a loan that offers a lower initial interest rate than most fixed rate mortgages for a set period. After the initial period, the interest rate can change, based on an index and a margin, and the monthly payment could go up or down accordingly.
DuGood offers a 5/1 ARM which means the interest rate is fixed for the first five years and will be subject to change annually for the remaining term of the loan.
What do the two numbers mean in an ARM?
- The first refers to the number of years the interest rate will remain fixed.
- The second refers to the number of years between interest rate changes after the initial term.
For example, a 5/1 ARM would have a fixed rate for the first 5 years, and then the rate would adjust every year after that.
When is an Adjustable-Rate Mortgage (ARM) a good option?
An ARM is a good option when interest rates are high, or if you’re looking for an initial lower rate with a lower monthly payment, or if you plan to sell your home, pay off your mortgage or refinance within five years.
How is the adjustable rate calculated after the initial fixed period?
DuGood uses the Secured Overnight Financing Rate (SOFR) plus a margin of 1.00% for rate adjustments after the initial fixed rate period. The rate adjustments are subject to the limitations outlined below.
Is there a cap on the rate adjustments?
The maximum interest rate adjustment is 2% per year, with a maximum life-of-loan increase of 5% above the initial rate.
Can you pay off an ARM early?
Yes, at DuGood, there are no pre-payment penalties.
Is the approval process different for ARMs?
Somewhat. We want to be sure the possible future rate adjustments would not make your mortgage payment unaffordable. For this reason, our approval process is somewhat different than for a traditional fixed rate mortgage.
Does DuGood offer homeowners insurance?
DuGood Credit Union has teamed with Travelers to offer members a discount on homeowners and condo insurance. Plus, if Travelers isn’t the right fit at this time, you can compare quotes from up to 50 national and regional carriers through InsuraMatch, a wholly owned agency of Travelers. To get a quote that includes your DuGood member discount on home or condo insurance and any other applicable discounts call Travelers at 1-888 979-0723 or click here to learn more including details and legal disclosures.