Get to know ARMs

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[MUSIC PLAYING] Buying a home is an exciting time for the family. Before you commit to years of costly payments, consider an adjustable rate mortgage, or an ARM. ARMs offer the stability and confidence of a traditional interest mortgage, but with a lower initial fixed rate. This lower rate saves you more money due to lower monthly payments.

At LGFCU, our five-year ARM comes with an initial fixed rate period of five years. After that, the rate could adjust every five years. If it does, it would only go up or down 2%, but no more than 6% for the life of the loan, which is typically 30 years. Plus, your credit union doesn't charge private mortgage insurance, also known as PMI, nor do we have points. That only adds to the savings.

So if you're planning to be in your home for less than 10 years, an ARM could be a great fit. A new home is a dream come true for any family. Visit LGFCU.org/armloans or contact local branch representatives to learn more about LGFCU ARMs.

LGFCU is an equal housing opportunity lender and federally insured by NCUA.

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The situations described in this video are for informational purposes only and meant to provide examples of the products and services LGFCU offers to its members, which may be subject to approval. Contact a financial advisor or legal or tax professional for additional guidance.

The individuals presented in this video are members and employees of LGFCU and receive no added compensation for their appearance.

LGFCU is an equal housing opportunity lender and federally insured by NCUA.