If you happen to reside in northern Michigan and are in the market for an adjustable rate mortgage with either a three year or five year reset period, you may have seen the “special offers” advertised by your neighborhood credit union – Northland Area Federal Credit Union.
Currently they are offering a promotional set of adjustable rate mortgages with APR’s as low as 3.20% for three years and 3.60% APR for five years. While these are considered “special” products by Northland FCU, they are actually a smigin above the national average for their respective terms. And just for the record, we’re certainly not trying to bash these promotional offers, but we find it misleading when banks and credit unions advertise rates, APR’s, or APY’s as “promotional” or “special” when they are hardly even keeping up with the national average.
Putting the offers in perspective:
- Today’s national average for 5/1 ARMs sits at 2.77%
- Today’s national average for 3/1 ARMs sits at 2.72%
- Today’s lowest interest rates on 5/1 ARMs in Michigan sit at 2.745%
- Today’s lowest interest rates on 3/1 ARMs in Michigan sit at 3.164%
The top rates found from our database filtering for Michigan rates only was assuming a loan of $165,000. Any amount above or below this number will likely move the APR and interest rate up or down.
Northland Area Federal Credit Union Adjustable Rates Disclosure:
3/1 ARM - After three years the rate will adjust no more than 2% per adjustment period or 6% over the life of the loan. These rates are their “as low as rates” based on the 3 year Treasury Bill and adjustments and restrictions may apply.
5/1 ARM - After five years the rate will adjust to no more than 2% per adjustment period or 6% over the life of the loan. These rates are their “as low as rates” based on the 5 year Treasury Bill. Adjustments and restrictions may apply.