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 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.

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. 

Additional Questions?

Listerhill has been 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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Frequently Asked Questions

  • What can home equity loans be used for?

    Home equity loans provide you with the opportunity to chase dreams to the fullest. Enjoy a vacation with the whole family, invest in a household remodeling project, or even finance an upcoming vehicle purchase with only a few clicks.  If you can dream it, you can achieve it!

  • What type of requirements exist for home equity loans?

    Home equity loans rely on a loan to value ratio (LTV) to disburse funds, meaning that your credit score and home equity value should be fairly substantial to take advantage of all possible benefits. For assistance in the home equity loan pre-approval process, please speak with your local Listerhill Credit Union branch.

  • How do home equity loans work?

    Also known as a second mortgage, home equity loans work by borrowing against the value of your home’s current equity. You may calculate this yourself by subtracting the amount you owe on your mortgage from the value of your home. Home equity loans provide lump-sum funds at fixed rates, creating affordable monthly payments that are consistent and affordable.

  • What information should I know before securing a land loan?

    When you purchase land, you want to ensure that it can be used for the desired purpose. That involves having certain information about the land in advance, such as the items listed below:

    • Land survey to know the boundaries of the property
    • Property easements so you know who has permission to enter or use your land for sewer pipes or cable wires
    • Title search to see what easements are on your land
    • Zoning laws to determine whether the land is zoned for residential use, commercial use, or another option
    • Flood hazard risk, so you’re aware of any extreme weather risks
    • Appraisal so you know the value of the land compared to similar options 
  • When does it make sense to refinance a mortgage?

    Refinancing your home loan can be a great option to secure a better loan for your current circumstances and future goals. It makes sense to refinance your mortgage if one of the benefits will be helpful for you:

    • Secure a lower interest rate
    • Reduce your mortgage term
    • Switch from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa
    • Borrow against the equity in your home


    If doing any of the above would benefit you, refinancing might be the next best move.