An Adjustable Rate Mortgage (ARM) typically offers lower rates than a fixed-rate mortgage. Your rate is locked for the first 3, 5, 7, or 10 years and then could adjust up (or down) based on the rate it’s tied to. It’s a great way to enjoy initial lower payments for borrowers who might plan on selling or refinancing before their fixed term ends.
Program Features:
- Competitive rates
- Purchase, rate and term refinance
- Cash-out refinance1
- Gift funds allowed for primary residence
- 3/1, 5/1, 7/1, 10/1 ARM
- Single-family residences, second homes, investment properties (1-unit)
- Planned unit developments (PUD)
- Condos (warrantable to FNMA guidelines)
- Non-warrantable condos, with restrictions2
- Acreage – up to 10 acres, not zoned rural or agricultural
1Cash-out refinance on primary residence and second home only. 2Maximum LTV is lesser of 80% or LTV as specified by loan program. Certain terms and restrictions apply. Program eligible in CO, NM, AZ, MI, TX, MO, KS, WA, CA (select areas/counties).