Adjustable-Rate Mortgage (ARM)

Realize the dream of homeownership. (For properties located in AZ ONLY)
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Adjustable-Rate Mortgage

Lower rates upfront, with flexibility if your plans might change.

A different kind of starting point

Not everyone plans to stay in the same home forever. An adjustable-rate mortgage (ARM) typically starts with a lower rate, then adjusts over time based on market conditions.

For properties located in AZ ONLY.

Why people choose this

  • Lower initial rate
  • Potentially lower early payments
  • Flexibility if you plan to move or refinance

What to expect

  • Adjustable interest rates that can change over time
  • No application fee
  • Free pre-approval and consultation
  • Discounted closing costs and rate lock options

Where it fits

This makes more sense if you:

  • Don't plan to stay long-term
  • Expect your income to grow
  • Want a lower starting payment

Get prequalified today.

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Rates

 

Features & Benefits

  • Competitive, adjustable interest rates*
  • No application fee
  • Free pre-approval on your loan
  • Free loan consultation
  • Discounted closing costs
  • Free rate locks

Why Adjustable-Rate Mortgage (ARM) ?

You do the searching. We'll handle the rest.

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Personal Guidance

Our mortgage professionals help you from start to finish. 
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Competitive Rates

Keep more of your money with our great rates. 
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Easy Processing

Applying for a loan can be done in person or online.
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FAQ

Mortgage Loan Frequently Asked Questions

What are the steps to applying for a mortgage loan?

Applying for a mortgage can seem like an overwhelming task, but the professionals at Hughes are experienced and available to make the process as stress-free as possible. Watch our video on mortgage application or read our step-by-step guide:

STEP 1: PRE-QUALIFICATION

Most realtors require a pre-qualification form from your lender to begin showing properties, but the benefit to you is personal guidance from our mortgage professionals on selecting your best price range, based on the financial information you provide. This step can be completed online or over the phone with one of our mortgage professionals, and does not include credit verification.

Follow these tips for the best results:

  • Understand your current financial standing (i.e. credit scores, debits, and assets).
  • Calculate the amount you have for a down payment.
  • Determine how long you plan to stay in the home.
  • Do not misrepresent the facts in the pre-qualification process. It could derail your home buying process in the income to debit ration verification step.

Run your own preliminary calculations using our special tools or call 520-794-8341 to schedule your free pre-qualification meeting today.

STEP 2: SCHEDULE AN APPOINTMENT AND GATHER YOUR DOCUMENTATION

You’ll need the following information and documents to complete your mortgage application. Please plan to bring these items, for everyone who will be named on the mortgage, to your appointment with a mortgage representative:

  • Proof of address for your current residence, as well as the previous two years.
  • Social Security numbers.
  • Employment history, with names, addresses, and phone numbers of current employer, as well as for the previous two years.
  • Bank and account information, including current balances.
  • Investment information, including if you currently own another home or property. The lender will need to know that address, current market value, and the amount owed on an existing mortgage.
  • Your current debt, including the name of creditors, account numbers, current balances and monthly payment amount.
  • Tax returns for the last five years.

STEP 3: COMPLETE THE MORTGAGE APPLICATION

You’ve been pre-qualified and now you’ve found the home you want to buy – make it official. Applying for a loan can be done in person or online here.

STEP 4: PRE-APPROVAL AND PROCESSING

Once the income to debit ratio has been verified, Hughes Federal Credit Union will issue approval on your loan request and evaluate the property you are interested in purchasing.

STEP 5: FINAL APPROVAL AND FUNDING

The paperwork has been completed and you are ready to move forward with closing on your new home!

 

What is a rate lock?

A rate lock is the agreed-upon interest rate set for a loan term.

How much does a rate lock cost?

Free! We do not charge to lock in a rate.


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Disclosures

Call for current rates

 

*Annual Percentage Rate (APR) and loan terms can affect your monthly payment. All loans include 1.250% Broker fee paid to Hughes FCU by the Lender (fee not paid by borrower) and are based on an 80% loan-to value (LTV) of purchase price. Use a Hughes Financial Calculator to calculate payment amounts for adjustable-rate loans. Consider the following ARM example:  

 
5/6month ARM – Loan is fixed for first 5 Years and then adjusts every 6 months with initial interest Rate Cap of 2.000%, Subsequent Cap of 1.000% and Life Cap of 5.000%, index used is SOFR. 

A purchase price of $300,000 with 20% down payment, loan amount of $240,000, for a 5/6month ARM, loan payment amortized of 30 years at 6.500% interest rate, APR of 9.040%, will have a payment of $1,516.96.** Discount Points of .692% Cost $1,660.80. 

**estimated payment does not include taxes, homeowner’s and if applicable mortgage insurance which will result in a higher monthly payment. 


All loans subject to approval. Certain restrictions may apply, rates are subject to change without notice. Property financed must be in Arizona. Rate based on creditworthiness and subject to change. The disclosed rates are based upon your credit score and other loan qualifications. A down payment less than 20% will require mortgage insurance. Contact a Hughes Federal Credit Union mortgage loan originator for additional information.

Refinance Rates, please contact a Mortgage Loan Originator.