ARMs Offer Lowest Interest Rates Available
An adjustable-rate mortgage (ARM) is a loan with an interest rate that changes. ARMs commonly start with much lower down payments than a comparable fixed-rate mortgage, but it is important to keep in mind:
– Your monthly payments could change
– Your mortgage payments may increase even if interest rates do not
– Your payments may not go down much or at all even if interest rates go down
- Usually lower mortgage payments than fixed-rate mortgages
- Lower rates available
- Save money when not staying in the house long-term
As per the Freddie Mac website:
- Loan Prospector®
- Non-Loan Prospector
- Loan Prospector Caution Mortgages and Non Loan Prospector mortgages must be manually underwritten per Guide Chapter 37.
- Minimum Indicator Score of 620 unless otherwise specified in the Guide (Loan Prospector A-minus mortgages are exempt).
- Maximum debt-to-income ratio of 45 percent for manually underwritten mortgages.
- All mortgages must meet the risk class and/or minimum Indicator Score requirements in Guide Exhibit 25
- Originate with most Freddie Mac mortgage products, including Home Possible Mortgages (5/1, 7/1 and 10/1 ARMs), Financed Permanent Buydown Mortgage and more.
- Reference Guide Section 30.16 for more information.
Steps to ARM
Before you start the ARM loan process, be prepared to provide some information to one of our loan officers.
- Social Security numbers
- Gross monthly salary
- Banking and financial information
- Tax returns