A fixed-rate mortgage offers stability, with consistent monthly payments throughout the life of the loan. This predictability can make budgeting easier, as your principal and interest payments won't change over time, regardless of fluctuations in interest rates. It's an ideal choice if you plan to stay in your home long-term.

An adjustable-rate mortgage (ARM) typically starts with a lower interest rate than a fixed-rate mortgage, which can result in lower monthly payments initially. This rate is fixed for a specified period (often 5 or 7 years), after which it adjusts periodically based on market conditions. The initial lower rate can offer several advantages:

• Increased affordability: The lower initial payments may allow buyers to qualify for a larger loan or purchase a more expensive home.
• Flexibility: ARMs can be suitable for buyers who plan to sell or refinance before the initial fixed period ends.
• Short-term savings: Buyers can save money during the initial fixed-rate period compared to a fixed-rate mortgage.

However, it's important to note that ARMs also come with risks:

• Payments could increase if interest rates rise.
• There's less predictability in long-term budgeting.

Depending on your financial profile and your unique loan terms, borrowers interested in a jumbo mortgage loan can put down as little as 5%.

APGFCU offers mortgages up to a jumbo loan limit of $2,150,000.

Locking in your rate allows you to secure the original interest rate on your loan, protecting you from higher interest rates during the approval process.

Credit unions are not-for-profit financial co-ops co-owned by their members. That allows us to return more of our earnings directly to you, rather than external investors, in the form of lower loan rates and fewer fees.