Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

[Jess21]

I also dont know what 5-5 ARM is dont feel bad lol

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@Anonymous wrote:

Can comeone explain what the 5-5 ARM means?  I feel stupid for asking but I won't know unless I do.  I am trying to figure out if we should push to get 5% together for a conventional, but if there is something reasonable out there that would help keep closing costs down (I would like to reserve our cash for moving costs, and initial repairs/emergencies).

Also, did you apply to be a member recently or had you already been an established member? 

PS:  Congratulations on your new home, how exciting!

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[Anonymous]

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@Jess21 wrote:

I also dont know what 5-5 ARM is dont feel bad lol

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@Anonymous wrote:

Can comeone explain what the 5-5 ARM means?  I feel stupid for asking but I won't know unless I do.  I am trying to figure out if we should push to get 5% together for a conventional, but if there is something reasonable out there that would help keep closing costs down (I would like to reserve our cash for moving costs, and initial repairs/emergencies).

Also, did you apply to be a member recently or had you already been an established member? 

PS:  Congratulations on your new home, how exciting!

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I did some googling - 5-5 ARM is an adjustable rate mortgage that stays a fixed rate for 5 years.  So every 5 years they can adjust the rate.  Not sure I am totally comfortable with that, although I guess you could refinance before the first 5 years is up to a conventional mortgage.

[Jess21]

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@Anonymous wrote:

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@Jess21 wrote:

I also dont know what 5-5 ARM is dont feel bad lol

---

@Anonymous wrote:

Can comeone explain what the 5-5 ARM means?  I feel stupid for asking but I won't know unless I do.  I am trying to figure out if we should push to get 5% together for a conventional, but if there is something reasonable out there that would help keep closing costs down (I would like to reserve our cash for moving costs, and initial repairs/emergencies).

Also, did you apply to be a member recently or had you already been an established member? 

PS:  Congratulations on your new home, how exciting!

---

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I did some googling - 5-5 ARM is an adjustable rate mortgage that stays a fixed rate for 5 years.  So every 5 years they can adjust the rate.  Not sure I am totally comfortable with that, although I guess you could refinance before the first 5 years is up to a conventional mortgage.

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I dotn like adjustable either but it seems like there is a cap so it wouldnt go over a cetain percentage either, so I guess not too bad

[REALISTICLYSPEAKING2014]

I too was approved with a 5/5 ARM - It is a 5 year adjustable (I qualified for 4.25) - what it means is for 5 years, your rate starts at in my case, 4.25. After 5 years it can increase but it caps at 2 points higher, so the maximum will be 6.25 for the life of the loan. That doesnt mean it WILL definalty go up, but it can.

I also asked my LO about a fixed rate and I can qualify for a 5.25 fixed rate, so either way, 5.25 fixed or max 6.25. My out of pocket will be about $4,000 as well. NFCU gives you 1500 towards closing costs and a 250 gift card after closing. This is a conventional loan. 100% financing, but you have a funding fee which can roll into the mortgage. ( I believe it is 1.75% of the loan). Overall, on a preapproval of 200,000, the amount out of pocket is still less than the amount if I applied for an FHA loan with 3.5% down. Another positive is no PMI! In my opinion, if you are a NFCU member and are looking for a mortgage, hands down I believe they offer one of the best mortgage programs around! Not to mention the customer service from every single person that works there is bar none, top notch!

I joined with a measly $50.00 saving account 5 years ago and a FICO of less than 540 overall, so needless to say, Navy Federal has proven to be amazing to me in helping my credit rebuild, purchase my dream car (2014 mustang converable for my 45th bday) and credit cards, CLOC, consolidation loan and now a mortgage. (see siggy)

I will be a loyal member for life and will scream it out loud of I could to anyone who is able to join with them! You wont be disappointed with ANYTHING you need if you stay on track, pay your bills and reamin loyal to them!

Hope my explaination helps you understand a little better. I will report back once I have completed my loan

[REALISTICLYSPEAKING2014]

Wow this is so helpful. I think I'm going to pull the trigger on the ARM as well. In terms of monthly payment, what was the difference between the ARM and the 100% financing. My mid score is about what yours is so its good to know that  right at 700 will still get you 4.25.

Did they ask for tax returns? Yes, they will want 2 years W2's.

Verify any assets or 401ks? Yes, they will ask for 2 months bank statements and I think the 401k will only be asked for if needed for the funds  It sounds so easy.

You make me want to apply today.  You should consider it - interest rates are increasing and inly going up.

I still want to get my utilization a bit lower though first. I got a condolidation loan a couple months ago from them so I could payoff all my cards and increase my FICO scores..Boy did it work...Just a suggestion that might help - it will affect  your DTI, but in my case it was worth the $100.00 a month payment to see my scores rise!

[Anonymous]

I would be more than interested in joining, but not a member yet.  I assume you would need to have an established membership?  Did anyone join and immediately apply for a mortgage?

[Jess21]

Does anyone know if i can qualify for a higher amount with a different product or is that set on stone with any kind of loan I get?

[edcampbell613]

I would check your numbers with them on the 5/5

I am pretty sure the max it can increase is way off from what you are stating.

5/5 fixed for the 1st 5 years with a max of 2 every year after that with a lifetime cap. I dont know that program they have but most arms are built the same.

Check it out, 5 years later might ick you in the rear!

[Jess21]

so approved amount can change if you change product?

[edcampbell613]

as long as your DTI is still in line. You can change the loan amount at anytime during the loan process.

Just dont want to do it to close to closing as it can affect your closing date due to new disclosures will need to be sent out.