Skip nav to main content.
People Driven Credit Union

Adjustable Rate Mortgage (ARM) Loans

Explore Flexible Home Financing with PDCU’s 7/1 and 10/10 Adjustable Rate Mortgage (ARM) Loans

Apply Online

7/1 and 10/10 Adjustable Rate Mortgage (ARM) Loans

Mortgage rates have gone up, but you can take advantage of a lower initial interest rate with a 7/1 or 10/10 Adjustable Rate Mortgage (ARM) loan from People Driven Credit Union! At People Driven Credit Union (PDCU), we understand that buying a home is one of your most significant financial decisions. We offer flexible Adjustable Rate Mortgage loans to help you achieve your homeownership dreams while managing costs effectively. Our 7/1 and 10/10 ARM loans provide competitive initial interest rates, making homeownership more affordable.

Get a personalized quote for an ARM loan

 

Meet Our Mortgage Loan Officer

Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Michelle Dzon

Member First Mortgage
michelle.dzon@memberfirstmortgage.com
616-301-1714 | NMLS ID: #401292 | People Driven Credit Union NMLS ID: #776727

 

Home Loans at People Driven Credit Union

Adjustable Rate Mortgage Comparison:

7/1 ARM Loan

Initial Rate Period: Enjoy a fixed interest rate for the first seven years.

Adjustment Period: The rate adjusts once every year after the initial seven-year period.

Benefits: Lower monthly payments for the first seven years, ideal for those planning to sell or refinance before the rate adjusts.

Apply Online

10/10 ARM Loan

Initial Rate Period: Enjoy a fixed interest rate for the first ten years.

Adjustment Period: The rate adjusts every 10 years after the initial ten-year period.

Benefits: Longer period of stable, lower payments, suitable for buyers who want a predictable payment for a decade.

Apply Online

 

Why Choose a PDCU ARM Loan?

  • Lower Initial Interest Rates: Reduced monthly payments during the fixed-rate period
  • No Prepayment Penalty: Refinance or pay off your mortgage early without penalties
  • Easy Online Application: User-friendly online application makes securing your loan quick and convenient

Important Considerations

  • Rate Adjustments: After the fixed-rate period, your interest rate may change every 12 months, affecting your monthly payment.
  • Future Refinancing: While the initial lower rates are attractive, consider your long-term plans. If rates change significantly, refinancing may be an option.

Eligibility

Our 7/1 and 10/10 ARM loans are available for both new home purchases and refinancing of existing mortgages.

All applications are subject to credit and property approval, and additional restrictions may apply.

Ready to explore the benefits of an Adjustable Rate Mortgage? Apply online, scan the QR code below, call us at 616-301-1714, or email Michelle Dzon for more information.

Adjustable Rate Mortgage (ARM) Loans QR Code

Apply for an ARM Loan

(616) 301.6278

Contact us today!

Meet Our Mortgage Loan Officer

Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Michelle Dzon

Member First Mortgage
michelle.dzon@memberfirstmortgage.com
616-301-1714 | NMLS ID: #401292 | People Driven Credit Union NMLS ID: #776727

 

Frequently Asked Questions

Meet Our PDCU Mortgage Specialist

Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

Yes, many borrowers choose to refinance their ARM to a fixed-rate mortgage before the adjustable period begins to lock in a stable interest rate and predictable monthly payments.

 

Refinance

Consider your financial situation, how long you plan to stay in the home, and your risk tolerance for potential interest rate changes. ARMs can be a good choice if you plan to sell or refinance before the adjustable period begins or expect interest rates to remain stable or decline.
Some ARMs may have prepayment penalties, but People Driven Credit Union does not. You can refinance or pay off your Adjustable Rate Mortgage with PDCU early without any prepayment penalties.
Yes, ARMs often have caps that limit how much the interest rate can increase at each adjustment period and over the life of the loan. These caps provide some protection against large payment increases.
ARM interest rates adjust based on a specific index (such as the Treasury index) plus a margin set by the lender. When the index rate changes, the interest rate on your loan adjusts accordingly.
The main risk with an ARM loan is that your monthly payments can increase if interest rates rise. Understanding the potential for payment changes is important to ensure that you can afford higher payments if the rate adjusts upward.
ARMs typically offer lower initial interest rates compared to fixed-rate mortgages, which can lead to lower initial monthly payments. This can be beneficial if you plan to sell or refinance before the adjustable period begins.
The initial period is when the interest rate on an ARM is fixed. After this period, the rate adjusts at regular intervals. For example, a 7/1 ARM has a fixed rate for the first seven years and then adjusts once every 12 months.
ARMs are often described with two numbers, such as 5/5, 7/1, or 10/1. The first number indicates the initial fixed-rate period (in years), and the second number indicates how often the rate will adjust after the initial period (in years).
Unlike a fixed-rate mortgage, where the interest rate remains constant throughout the loan term, an Adjustable Rate Mortgage has an interest rate that adjusts periodically. This means your monthly payments can increase or decrease over time based on changes in the interest rate.
  • Copy of your driver’s license
  • Last 2 years W2’s
  • Most recent 30 days span of paystubs
  • Last 2 years Federal Tax Returns
  • Most recent two months bank statements, all pages
  • Contact information for homeowner’s insurance agent
You may give us a call at 248-263-4100 to speak with the loan department.

Disclosures

Equal Housing Lender logo

Equal Housing Lender. Member First Mortgage, LLC (MFM) NMLS ID# 149532. All loans are subject to credit approval. Terms and conditions apply. Mortgage insurance may be required based on borrower qualifications. Program availability is subject to change without notice.

*Rates may vary, and payment may increase after consummation.

*Available on all purchase or refinance applications for a primary residence using a conventional 7/1 or 10/10 ARM loan product with People Driven Credit Union. This is not a commitment to lend. All lending products are subject to credit and property approval. Additional restrictions may apply. Refinancing an existing mortgage loan may result in higher total finance charges over the life of the loan. Rate may increase after consummation.


Membership Requirement:

All accounts and loans require membership at People Driven Credit Union. Membership is available to individuals who live, work, worship, or attend school in the State of Michigan, as well as relatives of current members. To complete an application for any account or loan, you will need the following information:
  • A valid Driver's License, State ID, or Passport with your current address
  • Your Social Security Number
A Membership Share Savings Account is required to establish membership at People Driven Credit Union. A $5 deposit secures your ownership share in the credit union and unlocks access to our full suite of products and services. This account earns 0.01% APY with a $5 minimum deposit.