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Adjustable-Rate Mortgages

Secure an adjustable-rate mortgage and take advantage of low rates to save on your monthly payment.

An adjustable-rate mortgage lets you secure a low initial payment and take advantage of every opportunity to reduce your rate over the length of your mortgage. At Listerhill, we can help you get the best rates and terms that you need to purchase the home you want at an affordable rate.

  • Flexible loan terms including a 3/3 and 5/5 adjustable-rate mortgage
  • Up to 100% financing
  • 2% Rate cap to keep your mortgage affordable
Adjustable-Rate Mortgages
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Adjustable-Rate Options

An adjustable-rate mortgage (ARM) allows you to lock in a low initial interest rate for your home loan for a period. Once that time expires, the interest rate will fluctuate with the market.

You can secure an adjustable-rate mortgage with terms that vary, including a 3/3 and a 5/5 mortgage.

Our ARMs give you more time at one rate before adjusting, unlike other lenders. While many adjustable-rate mortgages fluctuate annually, you can go 3-5 years without a rate change when you choose Listerhill.

Which option is right for you?

It comes down to your long-term goals and short-term affordability.

  • You might prefer an adjustable-rate mortgage over a fixed-rate mortgage if...
    • You plan to move before the introductory rate expires.
    • You want a lower payment during your initial payment period.
    • You think rates will drop in the future.
    • You are planning on relocating before the rate adjusts
    • You know you will be paying off the loan in a few years
    • You need to move fast and have limited time to secure a down payment
    • You do not qualify for a 30-year fixed-rate mortgage, but want a 30-year payment schedule
    • Your payment could decrease if the index against which your ARM is benchmarked drops
  • A 3/3 adjustable-rate mortgage is right for you if...

    A 30-year ARM with a fixed interest rate for the first three years, then fluctuating every three years

    A 3/3 ARM is best if you want to lock in the lowest rate, but over a shorter period and are okay with the rate fluctuating more often.

  • A 5/5 adjustable rate-mortgage is right for you if...

    A 30-year ARM with a fixed interest rate for the first five years, then fluctuating every five years.

    A 5/5 ARM is best if you want to lock in a low rate over a longer period and maintain the same rate over an extended time.

    With a 5/5 adjustable-rate mortgage, you can go 10 years with only one rate adjustment, whereas with other lenders, you could experience up to six rate changes in the same time period.

Product Features
Up To 100% Financing

Get up to 100% financing on select mortgage products.

Pay Back on Your Terms

Consult with one of our friendly loan officers about a payback term that fits your goals.

Convenient Payment Options

Conveniently pay off your loan through Online or Mobile Banking, automatic payments, or your local branch.

Electronic Mortgage Application Process

Buy your home without ever entering a branch.

No Charge for Mortgage Insurance

When you get an In House Loan with Listerhill, pay no monthly charge for Mortgage Insurance so you can dedicate your full monthly payment to your actual loan. 

Save Money Where it Matters

We charge no Mortgage Tax for Alabama real estate, no admin fees ever for our In House Loans, and have discounted origination fees on purchases.

Adjustable or Fixed Rates

Get into a home with a low adjustable rate or at a fixed rate set by the market.

Construction Loan

Build the home (or addition) of your dreams.

Government Subsidized Loans

Don't have the cash to put down? Qualify for a low (sometimes no) down payment with FHA, USDA, or VA mortgage loans.

Waived Maintenance Fee

Enjoy the perk of no Maintenance Fee with your Listerhill membership while your Listerhill loan is open or has been open within the last 12 months.

Requirements for Adjustable-Rate Mortgage Qualification

To qualify for an adjustable-rate mortgage, we will look at your financial background to determine whether you have a manageable level of debt, steady income, and good credit history.

Debt to income ratio: We will review your debt to income ratio (DTI) to ensure you don’t have more debt than your income can manage. A recommended DTI, including your mortgage payment, is no more than 43%.

Steady income: Whether you’re self-employed or have a W2 job, we want to ensure that you have a stable work history showcasing your likelihood of being able to afford your home now and in the future. Two years of consistent employment are typically required to qualify for a home loan.

Credit history: Your credit score is a significant indicator of your financial responsibility. We will review your credit history and credit score to determine whether you have the background that showcases your ability to manage mortgage payments.

Down payment: For in-house 30-year loans, a down payment is required no matter the credit score. The more down payment you put down, the lower your interest rate. The sweet spot is 20%. This also gives you more equity in your home to use down the road for getting cash out for updates, improvements, or emergencies that may arise. On the ARMS we require 5% down for any 3/3 ARM no matter the credit score. The 5/5 ARM can be done as a 100% loan with no down payment depending on other qualifying attributes.

While we look at these four factors to help you qualify for a mortgage, we also realize you’re a person and will review your full profile and speak with you directly to get you the loan you want and can afford.

Frequently Asked Questions

  • Does it matter who your mortgage is with?

    Yes because choosing the right lender for your home loan or refinance can lead to a better transaction overall. This is especially important if you are a first time homebuyer or attempting to qualify under special circumstances.

  • Why choose Listerhill for my mortgage?

    At Listerhill, our focus is on “people helping people.” When you purchase a home, we want to offer you the support you need from application to closing.

    As a nonprofit cooperative owned and operated by its members, you own an equal “share” in Listerhill and vote in elections for the Board of Directors and Supervisory Committee. That means your voice is always heard, and in turn, our actions reflect your needs and desires.

    Our mortgage rates, terms, and policies will always reflect your needs in securing the best credit union mortgage loan in Alabama.

    Apply Now

  • Is a credit union better for mortgages?

    Securing a mortgage through a credit union is preferable for many seeking to purchase a new home or refinance. Credit unions often offer more competitive mortgage rates in Alabama and are more flexible with their terms and conditions.

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Meet our Mortgage Loan Officers
Stacy Aldridge

NMLS# 449408

4790 East Second Street, Muscle Shoals, AL 35661

256.383.9204, ext. 1222

saldridge@listerhill.com

Apply Now with Stacy

Casey Neill

NMLS# 207237

1623 Hatcher Lane, Columbia, TN 38401

256.383.9204, ext. 3813

cneill@listerhill.com

Apply Now with Casey

Vicki Wilson

NMLS# 198718

4790 East Second Street, Muscle Shoals, AL 35661

256.383.9204, ext. 1386

vwilson@listerhill.com

Apply Now with Vicki

Ashley Robinson

NMLS# 1816083

1812 Woodward Ave, Muscle Shoals, AL 35661

256.383.9204, ext. 2941

arobinson@listerhill.com

Apply Now with Ashley

Blair Cunningham

NMLS# 1962170

4790 2nd St, Muscle Shoals, AL 35661

256.383.9204, ext. 3940

bcunningham@listerhill.com

Apply Now with Blair

Katie Lewis

NMLS# 655785

22223 US HWY 72 Athens, AL 35613

256.383.9204, ext. 1397

klewis@listerhill.com

Apply Now with Katie

Nortricia Starnes

NMLS# 534384

1850 Cherokee Avenue Southwest, Cullman, AL 35055

256.383.9204, ext. 2825

nstarnes@listerhill.com

Apply Now with Nortricia

Karri Cummings

NMLS# 1701666

13400 Highway 43, Russellville, AL 35653

256.383.9204, ext. 2321

kcummings@listerhill.com

Apply Now with Karri

Adjustable-Rate Mortgage Resources
Mortgage Payment Calculator

Our mortgage payment calculator helps you determine what your monthly mortgage payment will be.

House Amount Calculator

Use our house amount calculator to calculate how much you can afford to spend on a home.

Major Purchases Savings Calculator

The major purchases savings calculator can help you figure out a savings plan for the costs associated with buying a home.

Additional Questions?

Listerhill has consistently been rated in the top tier for overall satisfaction by our members. While we hope you find the information you need online, we'd be happy to talk with you about questions you may have. Call us at (256) 383-9204 or 1-800-239-6033 for friendly, local assistance. Or even stop by one of our branches for personal service.

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Common Links

Frequently Asked Questions

  • How do I connect my additional Listerhill account(s) in Online Banking?

    In order to add an additional Listerhill account in Online Banking, please:

    1. Log in to Online Banking through our website.
    2. Click the Accounts tab at the top.
    3. Click “Connect An Account”
    4. To add a Listerhill Account, click “Listerhill Credit Union Account”.
    5. Enter the appropriate information on this screen and select the appropriate account type.
      1. Account Number.
      2. Nickname the Account.
      3. Select the Account Type.
        1. Share Draft – Checking
        2. Share – Savings
        3. Share Certificate – CD
        4. IRA
        5. Line of Credit
        6. Loan
        7. Credit Card
      4. Check the box for Bill Pay if desired.

    Once finished, the new account will be added by the next business day.

  • How do I connect my credit card(s) in Online Banking?

    In order to add a new credit card in Online Banking, please:

    1. Log in to Online Banking through our website.
    2. Click the Accounts tab at the top.
    3. Click “Connect An Account”
    4. To add a credit card, click “Listerhill Credit Union Account”.
    5. Enter the appropriate information on the screen and select the appropriate account type.
      1. Account Number.
      2. Nickname the Account.
      3. Select the Account Type.
        1. Share Draft – Checking
        2. Share – Savings
        3. Share Certificate – CD
        4. IRA
        5. Line of Credit
        6. Loan
        7. Credit Card
      4. Check the Box for Bill Pay if desired.

    Once finished, the new card will be added by the next business day.

  • What if I had merchandise points?

    Cashbackmall will be available for redemption on 9/1/22 for cards converting to cash back rewards from merchandise points.

  • Who is eligible for Cash Back Rewards?

    Cash Back Rewards are available for Listerhill Signature Credit Cards. Signature credit cards require a limit of $5,000 or greater.

  • How much do I get back in Cash Rewards?

    Cash Back Rewards are calculated at 2% on purchases. Cash Advances and Balance Transfers do not earn Cash Back Rewards.