The Best Mortgage Rates in Tacoma, WA

The 5/5 ARM (Adjustable Rate Mortgage) offers an initial fixed rate for five years, after which the rate adjusts every five years based on market conditions. This can result in lower initial payments compared to a fixed-rate mortgage. It’s a good option if you plan to stay in your home for a shorter period or expect interest rates to remain stable or to fall.

A Home Equity fixed loan provides a lump sum at a fixed interest rate, making it ideal for large expenses with predictable payments. A Home Equity Line of Credit (HELOC) allows you to borrow as needed, with variable interest rates, giving you flexibility for ongoing or unexpected expenses. A HELOC is best if you prefer having access to funds over time rather than all at once.

You’ll need to provide proof of ID and income (such as pay stubs or tax returns), access to your credit history, and details about your assets and liabilities. ACU will guide you through the specific documentation needed based on your situation.

A rate lock is an agreement between you and your lender to “lock in” a specific interest rate for a set period, typically 30 to 60 days, during the mortgage application process. This protects you from rate increases while your loan is being finalized. If rates go up, you’re locked in at the lower rate, but if lenders start cutting rates, you may need to renegotiate or let the lock expire to take advantage of the lower rate.

Discount points are fees you pay upfront to your lender at closing for a lower interest rate on your mortgage. Each point typically costs 1% of your loan amount and can reduce your interest rate by a few basis points. Paying points can save you money over the life of the loan if you plan to stay in your home long-term.

Consider a 30-year fixed mortgage if you want lower monthly payments and plan to stay in your home long-term. A 20 or 15-year fixed-rate mortgage might be better if you can afford higher payments and want to save on interest over the life of the loan. Choose based on your financial goals and budget.

Closing costs are the fees and expenses you need to pay when finalizing a mortgage. These can include lender fees, appraisal fees, title insurance, attorney fees, and prepaid expenses like property taxes and homeowners insurance. Typically, closing costs range from 2% to 5% of your loan amount.

None of the real estate loan programs we offer have penalties for prepayment. You can pay off your mortgage at any time with no additional charges.

The maximum percentage of your home’s value that you can borrow, also known as the loan-to-value (LTV) ratio, varies by loan type. For ACU home loans, the LTV can be up to 100% for certain products, like the 5/5 ARM Pure Plus, while others, like Jumbo loans, may have an LTV limit of 80%. The best way to determine what loan amount we can offer is to complete our online application!