5/5 Adjustable Rate Mortgages (ARM)

Affordability and stability— all in one home loan!

Lock today's rate for at least 5 years.3

Interest rates will adjust at the five-year mark, but don’t worry— Cal Coast has your back. We cap your interest rate adjustments to keep your monthly payments predictable and within reach, as your rate adjusts only once every five years.

Today's Rates

Term Rate APR Points
Conforming 5/5 ARM³ 7.000% 7.006% 0.000%
Jumbo 5/5 ARM⁴ 7.000% 6.983% 0.000%
Conforming 5/5 ARM Advantage⁵ 7.125% 7.059% 0.000%
Jumbo 5/5 ARM Advantage⁶ 7.125% 7.036% 0.000%

What is a 5/5 ARM loan?

A 5/5 ARM loan is an adjustable-rate mortgage that offers a fixed interest rate for the first five years.

At Cal Coast we've gone the extra mile to support members who get a 5/5 ARM loan. Many ARM loans have their interest rates adjusted annually, but with our 5/5 ARM rates are only modified once every 5 years. We've also set a maximum adjustment cap of 2% every 5 years, and 5% over the life of the loan. This member-centric approach can help shield you from unwelcome payment surprises.

  • Rate adjusts only once every 5 years
  • Low interest rate with affordable initial payments
  • $0 out of pocket options available
  • Lender-paid mortgage insurance option available
  • Interest may be tax deductible (please consult your tax advisor)

When should you consider a 5/5 ARM loan?

You may be able to save money by choosing a 5/5 ARM, as these loans typically offer a lower initial interest rate compared to fixed-rate mortgages. A 5/5 ARM loan may be a good option if you:

  • Are looking to purchase a home with 5% down1
  • Plan to refinance or sell your home in the next 5 years
  • Are a first-time homebuyer needing a lower payment during your first years as a home owner

With a 5/5 ARM, enjoy peace of mind— and your dream home!

Features

5/5 ARM 5/5 ARM ADVANTAGE
TERM 5/5 ARM 5/5 ARM
MAXIMUM LOAN AMOUNT $2,250,000 $2,250,000
MINIMUM DOWN PAYMENT As low as 5% depending on loan amount1 As low as 5% depending on loan amount2
TRANSACTION TYPE Purchase or Refinance Purchase or Refinance
PROPERTY USE Owner occupied, 2nd home, Investment Owner occupied, 2nd home, Investment
PROPERTY TYPE Single family, Condo Single family, Condo
MORTGAGE INSURANCE Standard monthly premium Lender-paid
LENDER CLOSING COSTS Seller credit allowed $2,500 lender credit³, Seller credit allowed

Review your options with a Mortgage Loan Officer.


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APR = Annual Percentage Rate

  1. 5/5 ARM with an initial interest rate of 6.375%, APR 7.146% and monthly payments of $3,137.55 inclusive of mortgage insurance. This does not include property insurance and taxes. Payment example based on a 30-year term, property value $500,000, 95% LTV, single family, owner-occupied. Rates subject to change once every 5 years based on the weekly average of the 5-Year Constant Maturity Treasury (CMT) index rate as made available by the Federal Reserve Board, plus a margin of 2.50%. Maximum adjustment cap 2% every 5 years and 5% over the life of the loan. Rates and terms as of 09/22/2023.
  2. 5/5 ARM Advantage with an initial interest rate of 7.000%, APR 7.153% and monthly payments of $3,160.19, there is no mortgage insurance for this loan. This does not include property insurance and taxes. Payment example based on a 30-year term, property value $500,000, loan amount $475,000, single family, owner-occupied. Rates subject to change once every 5 years based on the weekly average of the 5-Year Constant Maturity Treasury (CMT) index rate as made available by the Federal Reserve Board, plus a margin of 2.50%. Maximum adjustment cap 2% every 5 years and 5% over the life of the loan. Rates and terms as of 09/22/2023.
  1. 5/5 Conforming ARM
  2. 5/5 Jumbo ARM
  3. 5/5 ARM Conforming Advantage
  4. 5/5 Jumbo ARM Advantage

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