Looking for a lower-interest alternative to the traditional 15- or 30-year fixed rate mortgage? Consider an adjustable rate mortgage, like the popular 5/5 ARM, for any number of needs or situations.

What’s a 5/5 ARM? Well, the first number represents the years before an interest rate adjustment and the second number tells you how many years each one of those adjustments lasts. In the case of a 5/5, it’s one adjustment after the first five years and then one adjustment every fifth year for the full term of the loan – up to 30 years. 

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Now that you know what it is, when should you consider a 5/5 ARM?


toy house on a table with regular sized keys laying beside itYou Plan on Paying Your Mortgage Off Soon

A lower interest rate can put you on the fast track for paying off your mortgage. The 5/5 ARM is especially advantageous if you plan to do it in five years or less.

You Plan on Selling Your Home in 5 to 10 Years

The adjustable rate mortgage is a great option for those who plan to sell before a possible rate increase. Staying for a decade or more? The rate only adjusts once every five years, so whether it goes up or down you’ll still be making predictable bi-weekly or monthly payments. 

You’re Ready to Refinance

So, you’d like to free up some cash for other home expenses. Maybe you want to upgrade your space or just pad the emergency fund. However you want to use it is up to you, but you can almost certainly make room in your mortgage payment with the lower rate of a 5/5 ARM. Plus, there’s the possibility of paying less interest over the life of the loan, even if rates increase.

You Expect Your Income to Increase

If a rate adjustment means a payment increase, it may not be a big deal if you’re expecting a raise, promotion, or even a career change. That lower rate – coupled with a higher income – will essentially hold you harmless in the event that the APR makes a jump after the first five years are done. It’s important to remember that there’s a cap of 2% on adjustments – 5% over the life of the loan.

Your Family Is Growing

You may qualify for more with an adjustable rate mortgage than a 30-year fixed. This bump in buying power means you can opt for a bigger home that will support a growing family.

The 5/5 ARM comes with a number of advantages, including that low rate that’s constant for five years. These adjustable rate mortgages are available at Visions for as low as 2.50% APR*, so consider applying now while it lasts.


*APR = Annual Percentage Rate. Credit union membership required with a $1 minimum deposit – certain restrictions apply. Check with a Visions Federal Credit Union representative for membership eligibility details. Applications are subject to standard credit criteria. New purchase or refinance. One- to four-family, owner-occupied, primary residence only. Offer valid on condominiums. Maximum mortgage dollar amount funded is based on region and property value. Borrowers are responsible for initial escrow setup, interim interest, owner’s title insurance, tax service fee, borrower’s attorney fees, survey, and private mortgage insurance, if applicable. Property insurance is required. Flood insurance may be required. Other fees or setup costs may be required. Rates are variable and can increase in the fifth year and every five years following by no more than 2% points annually, up to a lifetime adjustment cap of 5%, and is based on the index at the adjustment time plus the margin. Rates cannot go below 3% after any adjustments. Please speak with a representative for current rate information or click here. Equal Housing Lender. Federally insured by NCUA.