BASKING RIDGE, N.J. — The Credit Union Mortgage Alliance Network has launched an adjustable rate mortgage product that allows credit unions to offer their members a 6/2 adjustable rate mortgage with a lower, fixed-interest rate for the first six years of the loan and a rate that only adjusts every two years after that.
CUMAnet Assistant Vice President of Credit Union Relations Leo O'Donnell said the product is "very unique" and added that it is not offered by Fannie Mae or Freddie Mac.
Since the 6/2 ARM adjusts every other year, it will reach its lifetime cap later than a shorter term ARM. It also gives the borrower a longer period of time between potential interest rate changes.
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