TUCSON, Ariz.–Tucson Federal Credit Union (TFCU) has launched the “Fixed4Five Mortgage Loan,” which it said combines the stability of a fixed-rate mortgage with the flexibility of an ARM.
According to Tucson FCU, the new mortgage features:
- An initial five-year fixed-rate period, offering stability and predictability for new homeowners
- Subsequent rate adjustments every five years not to exceed 2%
- A lifetime cap that limits rate increases to no more than five percentage points over the loan's lifetime, providing long-term peace of mind
- Availability for 30-year mortgage terms, providing lower monthly payments
‘Best of Both Worlds’
"We designed the Fixed4Five Mortgage Loan to give our local home buyers the best of both worlds - the security of a fixed rate for those crucial first five years, and then the opportunity to adapt afterwards based on changing market conditions and personal financial goals," CEO Matthew Gaspari said in a statement.
Tucson Federal said the Fixed4Five Mortgage Loan is particularly advantageous for homebuyers who:
- Anticipate changes in their financial situation over time
- Want to benefit from potentially lower initial rates compared to traditional 30-year fixed mortgages
- Desire the flexibility to refinance or sell their home before or after the initial fixed-rate period