3/1 and 5/1 ARMs

Get into a house fast with an adjustable rate mortgage - offering a low initial rate and low- and no- down payment options.

What is a 3/1 or 5/1 adjustable rate mortgage (ARM)?

A 3/1 or 5/1 ARM offers an interest rate that is fixed for a set period of time (either three or five years) and then adjusts annually thereafter. Initial rates are always below current market rates for a conventional fixed-rate 30-year loan.

An Alaska USA 3/1 or 5/1 ARM is especially appealing for borrowers who may not remain in a residence for a long period of time, or those who are looking for low rates and low down payment options.

What types of ARMs does Alaska USA offer?

Alaska USA offers 3/1 and 5/1 ARMs in the following categories:

FHA Hybrid ARM - Minimize your down payment by using this federally insured program.

Conventional Hybrid ARM - When you're looking for the advantages of an ARM, but don't fit into a VA or FHA program, you can take advantage of a Conventional ARM, offering low rates, low- or no- down payments, and additional options.

And more! - Other types of ARMs are also available.

What if rates go up or down dramatically?

You are guaranteed a fixed rate for the first three or five years, depending on the program you choose. Afterward, your rate will adjust annually, but never more than 2% in any year and no more than 6% over the life of your loan. (For FHA ARMs, the adjustment is never more than 1% annually or 5% over the life of the loan.)

What are the current rates and terms?

Current rates are available online at www.alaskausa.org or by calling 563-3033 or (800) 737-3033 outside Anchorage. The maximum length of the mortgage is 40 years, but shorter terms are available in 5- year increments.

 

Are there limitations to the kind of home I can finance with an ARM?

Yes. All loans must be on detached single-family or duplex residences or zero-lot-line homes that are the primary residence of the member. However, in some cases, retirement homes may also qualify for financing.

How much financing is available?

Up to 95% financing is available although certain restrictions do apply.

What kind of fees can I expect to pay?

Typical closing costs, which include a 1% loan origination fee. Alaska USA will provide you with a complete fee itemization.

How do I get started?

It's easy!  You can apply online 24/7 at www.alaskausamortgage.com.  Or, download an application, complete it and fax to (907) 261-3401 or mail to Alaska USA Mortgage Company, P.O. Box 196850, Anchorage, Alaska 99519-6850.  You can also visit an Alaska USA Mortgage Company office or branch.  For more information, call 563-3033 or (800) 737-3033 outside Anchorage.

Highlights

An Alaska USA Adjustable Rate Mortgage can get you into a home quickly and affordably, with up to 95% financing available.

Variety of programs to meet your needs.

Mortgage services are provided by Alaska USA Mortgage Company, a member of the Alaska USA family of financial service companies.

AKUSA 02366-I R04/13/09
Alaska USA is an equal housing lender.