United Wholesale Mortgages on Wednesday launched premium jumbo variable rate mortgage (ARM) products, signaling that demand for ARMs is increasing within the brokerage community.
According to the top-ranked wholesale lender, their top-rated jumbo ARMs will allow brokers to offer “competitive rates” on five, seven and 10 year variable rate mortgages.
“Independent mortgage brokers now have a competitive option for borrowers who are likely to move out or refinance in a few years,” the Pontiac, Mich.-Based lender said in a statement.
UWM added that this product will be of benefit to those who “may be looking for a lower rate on primary, secondary or investment homes that they don’t plan to hold for the long term.”
Although the wholesale lender has not publicly disclosed the rate or terms, Mark Westcott, senior loan officer at Cross-country ski mortgage, told HousingWire that there must be an incentive for borrowers to go for an ARM product instead of going for a conventional 30-year fixed-rate loan.