BECU Loan Options

 Mortgage Type:
10/6 ARM - Land Loan SOFR
 Advantages:
  • Initial fixed interest rate for 10 full years; rate adjusts every 6 months thereafter.
  • Member wants to purchase land now and build later.
  • Parcels up to 20 acres.
  • Purchase loan amounts to $400,000.
  •  Best Choice If:
  • Member is looking to purchase improved or unimproved property or refinance improved land.
  • Wants a lower rate and/or payment than a fixed-rate mortgage offers.
  •  Disadvantages:
  • Only available for properties in Washington and Idaho.
  • No large structures or mobile homes are allowed on the property.
  • There can be no construction of any sort in progress.
  • Cannot be used for commercial, agricultural, timberland or farming.
  •  ARM Features:
  • Rate caps = 5% at the first adjustment, 1% every 6 months thereafter
  • 5% lifetime cap
  • Index = FSBNY 30-Day Avg SOFR
  • Margin = 3.00%
  • Non-convertible
  • Assumable with lender approval
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