United Wholesale Mortgage rolled out prime jumbo adjustable-rate mortgage (ARMs) products on Wednesday, signaling that demand for ARMs is growing inside of the broker community.
According to the top-ranked wholesale lender, their prime jumbo ARMs will allow brokers to offer “competitive pricing” on five-, seven- and 10-year adjustable-rate mortgages.
“Independent mortgage brokers now have a competitive option for those borrowers who are likely to move or refinance within a few years,” the Pontiac, Michigan-based lender said in a statement.
UWM added that this product will be beneficial to those who “may be looking for a lower rate on primary, second or investment homes they don’t plan on keeping long-term.”
Although the wholesale lender did not publicly disclose the rate or the terms, Mark Westcott, senior loan officer at CrossCountry Mortgage, told HousingWire that there must be an incentive for borrowers to opt for an ARMs product instead of opting for a 30-year fixed-rate conventional loan.