Loan Products

You know how it typically goes — if you want low monthly payments, you’ll have to go for the higher interest rate. Not with DVA FCU’s 5/5/Flex program! We offer you the same low rate regardless of the term, so your monthly payment is flexible!

A 5/5/Flex loan is a closed-ended adjustable-rate home equity loan. The interest rate is fixed for the first 5 years and then adjusts every 5 years thereafter until the end of the term. Ten-, 15- and 20-year terms are available. Each option has the same interest rate, so you’re in control of your minimum monthly payment amount! As with all of our real estate loans, there is no pre-payment penalty.

A 5/5/10 is for members seeking a lower payment than the standard 5-year fixed-rate home equity loan. (The longer the term, the lower the payment.)

A 5/5/15 has even lower payments because of the longer term. The starting rate will usually be lower than the standard 15-year fixed-rate home equity loan, so it’s good for members who are looking to reducetheir monthly expenses but who do not want to take on a 20-year debt.

A 5/5/20 gets the member the biggest bang for their buck! Unlike the 20-year fixed-rate loan, the lower rate in the

first 5 years will be taken out over a 20-year period, resulting in the lowest monthly payments possible!

Get the Home Equity Loan with Flexibility Today!

*5/5 FLEX - CLOSED END HOME EQUITY ADJUSTABLE RATE MORTGAGE DISCLOSURE

This disclosure describes the features of the adjustable-rate mortgage (ARM) program you are considering.

Your interest rate will be fixed for the first five years after which it will be based on an index rate plus a margin.

The interest rate used at the time of rate changes will be based on the highest Prime Rate in the “Money Rates” column of the Wall Street Journal plus our margin. Information about the index rate is published weekly in the Wall Street Journal. We will select the Prime Rate 30 days before any interest rate adjustment.

We have recently used a margin of 0%; we have recently used an initial rate of 7.25%. Ask for our current initial interest rate and margin.

Over the term of the loan your interest rate will never be less than 5% or greater than 18%.

Your monthly payment can change. Payments may increase or decrease substantially based on changes in the interest rate. You will be notified in writing at least 25, but not more than 120, calendar days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and loan balance.

For example, on a $10,000, 10 year loan with an initial interest rate of 7.25% in effect on March 1, 2007, the maximum amount that the interest rate can rise under this program is 10.75 percentage point(s) to 18.00%, and the monthly payment can rise from a first year payment of $117.40 to a maximum of $149.67 in the 6th year.

To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $60,000 would be: 60,000/10,000 = 6; 6 x $117.40 = $704.40 per month.)

For example, on a $10,000, 15 year loan with an initial interest rate of 7.25% in effect on March 1, 2007, the maximum amount that the interest rate can rise under this program is 10.75 percentage point(s) to 18.00%, and the monthly payment can rise from a first year payment of $91.29 to a maximum of $140.10 in the 6th year.

For example, on a $10,000, 20 year loan with an initial interest rate of 7.25% in effect on March 1, 2007, the maximum amount that the interest rate can rise under this program is 10.75 percentage point(s) to 18.00%, and the monthly payment can rise from a first year payment of $79.04 to a maximum of $139.43 in the 6th year.