LAFCU launches 10/6 adjustable-rate mortgage to help home buyers counter effects of inflation and rising interest rates
LANSING, MI (July 27, 2022) — As inflation grows, the adjustable-rate mortgage (ARM) that was a hallmark of the 1980s inflationary period and the mid-2000s mortgage crisis is making a comeback with LAFCU offering a new 10/6 ARM.
“LAFCU’s 10/6 ARM loan is a low-cost option that allows members to purchase more house for less out-of-pocket monthly expense,” Rob Boomershine, LAFCU vice president of lending. “It was developed to help our members in this period of inflation and rising interest rates.”
The Stantons, of St. Johns, were one of the first families to take advantage of LAFCU’s newly introduced 10/6 ARM loan, which is typically priced up to 2 percentage points less than a 30-year fixed loan.
With a 10/6 ARM, the loan has a fixed rate of interest for the first 10 years of the loan. After that, the interest rate will adjust once every 6 months over the remaining 20 years. These terms apply to both new and refinanced mortgages.
Amber and David Stanton had been living in a 900-square-foot mobile home for four years with their five children while trying to get approved for a mortgage.
“We had been trying to work with another lender but had never met their requirements,” said Amber Stanton. “After working with a loan officer at LAFCU, we were pre-approved and able to pursue our dream of owning our own house.
“The 10/6 ARM saved us $200 a month on our mortgage. Knowing the monthly payments will be stable for 10 years made us much more comfortable with buying a house.”
Boomershine also noted that LAFCU helps physicians obtain mortgages in which student loan balances do not negatively impact the member’s debt-to-income ratio. This allows members to qualify more easily for a mortgage or for a mortgage of a higher amount.
Membership in LAFCU is open to any individual who lives, works, worships, or attends school in Michigan, as well as to businesses in Michigan.
Amber and David Stanton, with their youngest child at their new home, were one of the first families to take advantage of LAFCU’s new 10/6 adjustable-rate loan allowing them to qualify for a manageable mortgage payment despite rising interest rates.
About LAFCU (MI)
Chartered in 1936, LAFCU is a not-for-profit financial cooperative open for membership to anyone who lives, works, worships or attends school in Michigan and to businesses and other entities located in Michigan. The credit union serves more than 69,000 members and holds $938 million in assets. It was named a Best Credit Union to Work For in 2020. LAFCU offers a comprehensive range of financial products and services as well as an expanding complement of financial technology solutions. Members enjoy benefits such as low fees, low interest rates on loans, high yields on savings, discounts, knowledgeable employees and nationwide access to fee-free ATMs. A recipient of the national Dora Maxwell Social Responsibility Community Service Award for credit unions, LAFCU enriches the communities it serves by supporting many organizations and causes. To learn more about LAFCU, call 800.748.0228 or visit www.lafcu.com.