Real Estate News – Fall 2018

Tanya Robinson, AVP Real Estate

Tanya Robinson,
AVP Real Estate Lending


Get the Low Rate Lock In: 15/15 ARM

Turn to Travis Credit Union for this 30-year home loan that comes with a low rate locked in for the first 15 years followed by a 15-year Adjustable Rate Mortgage (ARM)!

What is an ARM?

An adjustable rate mortgage is a “real estate loan in which the interest rate is periodically … adjusted up or down to reflect the current market rates. ARMs usually specify limits as to how high or low the interest rate can go [and how often]” (Business Dictionary, 2018).

Adjustable rate mortgages are capped so that they do not raise in rate infinitely. There are limits place through the loan period.

Benefits of 15/15 ARM

There are several benefits of our 15/15 ARM. First, you’ll enjoy the stability of a fixed-rate mortgage for 15 years, giving you peace of mind that your mortgage payment is locked during this period. Second, the adjustable rate will only increase once in the 30-year life of the loan and that rate increase is capped.

“Interest rates are always great so I don’t have to compare to other financial institutions.”

The only adjustment would occur at year 16, based on the margin plus the value of the 10-Year Treasury Weekly average with a lifetime cap rate of 6.00% adjustment to the start rate. Therefore, a member with a start rate at 4.375% would have a maximum rate-adjustment lifetime cap as 10.375%.

These caps protects you from inflated interest rates over the life of the loan.

Is the 15/15 ARM Right for you?

Travis Credit Union’s 15/15 ARM is capped so that it can only increase by up to six percentage points during the life of the loan. The great thing about this adjustable rate mortgage is that you always have the option to refinance after 15 years if you can get a better rate.

Why Turn to Travis Credit Union?

Your mortgage is in professional and capable hands. Whenever you have questions, we are here to answer them in a way that is convenient for you. Call, email or drop by – we are here for you! Friendly, professional mortgage consultant teams are here to help you through the entire process. Your home is personal and we get that!

When you bring your mortgage to Travis Credit Union, you are choosing to invest in yourself and your community. Local people and local decisions – we can make the difference for you.

“We can’t say thank you enough! We have been so blessed to have your team at work for us!! You have been calm, professional, knowledgeable and encouraging throughout the entire process!”

Joining Is Easy!

If you live here, you can bank here. Everyone who lives, works, worships or attends school in our 12 county area is eligible to become a member of Travis Credit Union.

Lock in your mortgage before rates rise again. Apply now for our 15/15 ARM!

Get the Low Rate Lock-In


15/15 Year Adjustable Rate Mortgage (ARM) rate is variable and can increase one time in year 16 of the loan and has a 6% interest rate adjustment cap. The new rate will be based on the current index at that time (weekly 10-year U.S. Treasury average, plus a margin of 1.310%). ARM loans are amortized over a 30-year term. APR (Annual Percentage Rate) as low as 4.434% is fixed for the first 15 years, loan based on 80% loan-to-value or less and credit approval. Rate is as of September 14, 2018 and subject to change without notice. For a $250.000 loan, payments for years 1-15 is $1,248.21. On a fully capped interest rate of 10.500%, payment for years 16-30 is $2,286.85. The adjusted payment example for years 16-30 is based on the current index as of June 28, 2018, plus margin. The actual index rate at the time of adjustment may be higher. The rate may vary depending on each individual’s credit history and underwriting factors. Financing available up to $453,100 (or the conforming loan limit for your county) for owner-occupied California primary residence properties only. Property insurance required. Other restrictions may apply. Payment example does not include taxes and insurance. If an impound account for taxes and insurance is desired, you are responsible for those set-up amounts and any charges assessed by your current lender such as reconveyance fees, payoff demand fees, prepayment penalties and any interim interest collected at closing. Certain membership eligibility requirements may apply. Equal Housing Opportunity. NMLS #643926.