UWM Launches 5,7 And 10-Year SOFR ARMs
United Wholesale Mortgage, LLC announced the return of Adjustable Rate Mortgages (ARMs).
UWM’s ARM choices are available on Conventional and Conventional High Balance loans with Elite pricing available on both, in addition to primary, secondary and investment properties for purchases and both rate/term and cash-out refinances, according to a press release.
“We work closely with our brokers so we can offer the right products at the right time. Bringing back ARMs will give brokers even more options to offer their borrowers,” said Mat Ishbia, president and CEO of UWM.
Highlights of 5/6/, 7/6 and 10/6 SOFR ARMs include fixed rate for 5, 7 or 10 years, available on all conventional products with UWM, LTV as high as 95% and rates 50 -75 bps lower than 30-year fixed.
SOFR ARMs, based on the latest industry-standard Secured Overnight Financing Rate, work much like traditional LIBOR ARMs, with an initial fixed-rate that’s often significantly lower than the available fixed rate. However, unlike ARMs based on the LIBOR index, SOFR ARMs adjust every six months after the initial rate expires and feature a 1% cap at each adjustment to help minimize the rate fluctuation risk for borrowers.
Most recently, UWM launched Prime Jumbo for 15 and 30-year fixed loans, introduced manufactured home loans and sharpened pricing for purchases and refinances over 760 FICO/$350,000 loan amount.