Navy Federal Credit Union, one of the largest mortgage lenders in the Washington metro market, this week unveiled two new ARM products: a 3/5 and 5/5 conforming (or jumbo) loan with start rates as low as 2.875% (2.943% APR).
Customers of the Vienna, Va.-based lender have taken quickly to the new products with $36 million of applications already on the books, the lender said.
“The feedback from our members has been extremely positive,” said Jack Gaffney, executive vice president of lending at the $48 billion credit union, the nation’s largest.
“We are happy to be able to offer another great mortgage option for our military members and their families,” he said. The 3/5 and 5/5 conforming and jumbo ARMs begin with a low, constant rate, then adjust once every five years.
The credit union does not charge an application fee and mortgage insurance is not required on 3/5 and 5/5 ARMs, as well as many other conventional loans.
According to figures compiled by National Mortgage News and the Quarterly Data Report, Navy ranks 25th nationwide among all residential funders.