Wailuku Federal Credit Union offers a variety of adjustable-rate loans to match your goals. With adjustable-rate loans, your interest rate is fixed for a term of 5, 7, or 10 years. After the fixed-rate term, your interest rate can fluctuate due to changes in the financial markets. Therefore, your monthly payments will also fluctuate. In general, an adjustable-rate loan will have a lower starting interest rate than a fixed-rate loan, and it should be considered if you plan on staying in the home for a relatively short period of time, such as five years.

For your protection, though, there are certain restrictions to the changes to your adjustable rate. First, after the fixed-rate period, your rate will only change once per year. Second, your rate can't increase by more than 2% or 5% (depending on the terms of your loan) during each annual adjustment period. This is known as an adjustment cap. In addition, your rate can’t increase by more than 5% over the life of your loan. This is known as a lifetime cap.

Contact Wailuku Federal Credit Union today and sit down with one of our loan experts to see if an adjustable-rate loan is the best option for achieving your goals.