Adjustable Rate Mortgage (ARM)

  • Lower initial interest rate compared to fixed-rate mortgages
  • Initial rate stays fixed for 5 or 7 years
  • Includes caps on interest rate increases
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An ARM Can Help You Reach Your Homeownership Goals

At BHFCU, you'll find 5/1 and 7/1 Adjustable Rate Mortgages. That means the starting interest rate is fixed for five or seven years and then adjusts every year after that, depending on a market index. With a reduced initial rate, this popular flexible option could benefit you.

  • If you need to save for things like renovations or debt payments, an ARM gives you a little extra cushion.
  • If you plan to move soon, an ARM gives you more flexibility without a long-term commitment.
  • If you're a first-time homebuyer, an ARM could help build equity at a lower rate and payment.
  • If you already own a home, you can access equity at a lower interest rate with a cash-out refinance.

Black Hills Federal Credit Union provides mortgage solutions that help you buy or build the home of your dreams with the trusted, local support of our South Dakota and Montana lending teams. Find a local lender to begin your homeownership journey.

Understanding ARM Interest Rates

After your initial few years, your ARM can adjust every year depending on what's happening in the national economy. Though there are caps in place to limit increases, you should be prepared for your interest rate to go up if you don't refinance. Keeping your credit score high and your debt-to-income ratio low will help you get the lowest possible interest rate. 

You always have a local team of mortgage experts ready to help. Get in touch with us so we can discuss all angles of the ARM and figure out the best plan for you.

Meet Our Mortgage Loan Officers

Christy Cline
Mortgage Loan Officer
Johanna Del Soldato
Mortgage Loan Officer
Ryan Kaufman
Mortgage Loan Officer
Joe Prince
Mortgage Loan Officer
Aaron Renville
Mortgage Loan Officer
Amber Zandstra
Mortgage Loan Officer
Start Your ARM Application Today
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Frequently Asked
Questions

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An adjustable-rate mortgage, or ARM, has a fixed interest rate for an initial period—typically five or seven years—before the rate begins adjusting annually based on market conditions.

A 5/1 ARM has a fixed rate for the first five years, while a 7/1 ARM remains fixed for seven years. After that initial period, the rate may adjust once per year.

An adjustable-rate mortgage may be a good option if you expect to move, refinance, or pay off the mortgage before the initial fixed-rate period ends. A BHFCU mortgage lender can help you compare your options.

BHFCU underwrites, processes, originates, and services its portfolio mortgages in-house, giving you a local team throughout the life of your loan.

Yes. BHFCU offers low and no down payment options for qualifying borrowers. A mortgage lender can help you determine which options may fit your situation.

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