Adjustable-Rate Mortgage

Improve your cash flow when you first move in with a lower initial interest rate and payment.

Adjustable rate

With low payments

Initial fixed period

5, 7, or 10 years

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Get flexibility and up-front savings with an Adjustable-rate mortgage (ARM)

An adjustable-rate mortgage provides a lower initial interest rate and payments than a fixed rate loan – and improves your cash flow when you first move in. Patelco offers 5, 7, or 10-year terms for an ARM. After that, your payments can increase or decrease with interest rate changes, based on the terms of your individual loan. The interest rate will cap during the adjustments and life of your loan. Depending on your situation, an ARM may be a good financial decision and can potentially save you money. It’s especially good for people who know they want to move in the near future or will pay off their mortgage loan in several years.

ARM loans are different from fixed-rate mortgage loans, which keep the same interest rate for the life of the loan.

Home sweet home loan benefits

Low rates, flexible options

Competitive rates, flexible loan programs and down payment options

Expert advice and guidance

Personalized advice and guidance at each step – find your Home Loan Consultant

Homebuyer resources

Search for properties, receive special discounts and more with Home Advantage

More than pre-approved

Make offers with confidence with an upfront full credit approval

Lock while you shop

Once pre-approved, we’ll honor your rate for 30 days while you shop for a home¹

On-time closings

We work fast to meet your closing deadlines on time

Purchase Adjustable Rates

Rates Effective 08/05/2024

Loan Program	Amount	Rate	APR²
5/1 30-Year Adjustable³	$50,000 to $766,550	6.000%	6.682%
5/5 30-Year Adjustable⁴	$50,000 to $766,550	6.125%	6.129%
7/1 30-Year Adjustable³	$50,000 to $766,550	6.000%	6.563%
10/1 30-Year Adjustable³	$50,000 to $766,550	6.125%	6.502%
10/10 30-Year Adjustable⁵	$50,000 to $766,550	6.250%	6.417%
5/1 30-Year Adjustable Jumbo³	$766,551 to $2,500,000	6.000%	6.666%
5/5 30-Year Adjustable Jumbo⁴	$766,551 to $2,500,000	6.125%	6.114%
7/1 30-Year Adjustable Jumbo³	$766,551 to $2,500,000	6.000%	6.548%
10/1 30-Year Adjustable Jumbo³	$766,551 to $2,500,000	6.125%	6.487%
10/10 30-Year Adjustable Jumbo⁵	$766,551 to $2,500,000	6.250%	6.777%

Mortgage Calculator

How much home can I afford? (Below, “Monthly child support payments” refers to child support payments made as a monthly expense, not to income from child support.)

Calculations provided are for demonstration purposes only and do not guarantee credit approval for the rate and terms displayed.

Frequently Asked Questions

An ARM provides a lower rate and payment in the early years of the loan – which helps improve your cash flow when you first move in. Patelco offers a fixed rate for the initial terms of 5,7, and 10 years. The money you save with a lower interest rate can be put in a higher yield savings or investment account. In addition, an ARM offers a good, less expensive option for home buyers who plan on relocating after a few years. Lastly, in a lower rate environment, borrowers can take advantage of falling rates without refinancing after their initial fixed rate term. They won’t have to worry about additional closing costs and fees.

The ARM offers a fixed rate for an initial period of 5, 7, or 10 years. After that initial fixed period, the interest rate adjusts. And while we put caps during the adjustments and the life of the loan, if the interest rate increases (for example in a higher rate environment), you may have higher payments.
The higher payments may make it difficult on your budget and make planning challenging. Even if you carefully plan, it might make refinancing or selling your home difficult.
ARMs are more complex than fixed-rate mortgage loans. We encourage you to speak with our expert Home Loan Consultants to discuss your options and find the right loan for you.

Your mortgage loan’s interest rate is affected by a variety of things, including your credit score, down payment, and the amount of your mortgage loan, among other factors. We encourage you to use our mortgage loan calculator to see your options or speak to a Home Loan Consultant for a more accurate quote.

The difference between a fixed rate and an adjustable-rate mortgage is that, for an adjustable-rate mortgage, the interest rate may go up or down. With a fixed rate mortgage, the interest rate is set when you take out the loan and will not change over the loan term.
It’s a common misconception that you need a 20% down payment to buy a home. We offer several programs designed to help make homeownership more affordable.
Here’s an overview of the most common options and their benefits:
5% Down Loan

Allows you to purchase a home in a higher price range, while still having a low down payment

Borrow up to $1 million

10% Down Piggyback Loan

Helps maximize your buying power by providing a 20% down payment

10% down + 10% down from 2nd mortgage (HELOC) obtained at closing

Borrow up to $2 million

Connect with a Home Loan Consultant

Buying a home is an important milestone and one of the biggest financial decisions you’ll make. But it can be stressful if you’re unsure of what to expect.

Our Home Loan Consultants will answer all of your questions so you’re well prepared and informed every step of the way.

Whether it’s your first home, a vacation property or an investment purchase, our Home Loan Consultants will meet with you to discuss your plans and goals.

They’re located locally and have a unique understanding of the Bay Area and Sacramento areas.

Take advantage of dealing with a local expert instead of one across the country.

Find a Consultant

Dreams come true with affordable home loans

Whether you’re looking to buy your first home or need more space for your growing family, we can help make your home ownership goals a reality. Our expert Home Loan Consultants are standing by to help you every step along the way. Feel free to contact us at 800.358.8228 (select 4 from the main menu) or start the process online and we’ll be in touch.

Apply Today

Home Buying Basics

Learn more through our Financial Wellness library.

¹ Lock and Shop program is available for 1st mortgage Jumbo loan purchase transactions only. Must have a home loan application with Patelco to lock in a rate. Patelco will honor your rate up to 30 days from the date it is locked. Once a fully executed purchase contract is received, the rate will prevail until loan funding.

² APR = Annual Percentage Rate. APRs are based on the following:

Conforming: Loan amount of $766,550 + closing costs
Jumbo: Loan amount of $1,500,000 + closing costs
Mortgage rates shown are based on a 30-day lock for purchase transactions

Rate shown at 60% loan-to-value (LTV), owner-occupied purchase with excellent credit and no subordinate financing. Your rate may be different than what is shown, there are pricing adjustments on certain scenarios. Please use the rate calculator on our mortgage application site to receive a better estimate for your scenario. Rates, terms, conditions, and availability are subject to change or withdrawal at any time and without notice. Nothing herein is or should be interpreted as an offer or commitment to lend. Loans are subject to credit and property approval. Other conditions and restrictions may apply. Hazard insurance may be required. NMLS ID Number is 506373.

³ The index is the weekly average of the 1-year US Treasury securities adjusted to constant maturity of one year, as made available by the Federal Reserve. The caps are 2% annually and 6% lifetime based on the initial rate. The current index is 4.80. Your rate may be different than what is shown.

⁴ The index (for 5/5 product) is the weekly average of the 5-year US Treasury securities adjusted to constant maturity of five years, as made available by the Federal Reserve. The caps are 2% every adjustment and 5% lifetime based on the initial rate. The current index is 4.01. Your rate may be different than what is shown.

⁵ The index (for 10/10 product) is the weekly average of the 10-year US Treasury securities adjusted to constant maturity of ten years, as made available by the Federal Reserve. The caps are 3% every adjustment and 6% lifetime based on the initial rate. The current index is 4.10. Your rate may be different than what is shown.