Articles Tagged with ''Adjustable-rate mortgage''

Borrowers flock to ARMs as interest rates rise

Mortgage closing rates hit highest point in 2018
As interest rates continue to increase, borrowers are increasingly utilizing adjustable rate mortgages. Here’s what the latest Ellie Mae report reveals about that and other dynamics of the mortgage lending market.
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LIBOR pushes ARM rates higher, borrowers brace for impact

Majority of increase yet to be felt
As home prices rise and interest rates increase, potential home buyers are not the only ones affected by the affordability changes. Homeowners who previously bought their home using an adjustable-rate mortgage are now seeing an increase in their monthly mortgage and interest payments, with more increases yet to come.
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As LIBOR phases out, should lenders still originate ARMs?

The uncertain replacement once LIBOR ends in five years
With the looming end to LIBOR coming up as U.K. authorities phase it out over the next five years, it creates a lot of uncertainty around the future of adjustable rate mortgages. LIBOR and ARMs are closely tied together, leaving the industry wondering if they should originate these loans any more.
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First American: Fraud and misrepresentation grew in February

Rising rates bring increase in adjustable rate mortgages
First American released its monthly Loan Application Defect Index, which showed loans became more risky in February due to increasing interest rates and a move toward adjustable rate mortgages. What else is behind the rise in these riskier loans? Click the headline to read more.
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Ellie Mae: Adjustable rate mortgages see uptick in 2017

Average FICO score drops in January
As interest rates rise, homebuyers and homeowners are locking in their loans – both for purchase and refinance. As a result, FICO scores dropped on all loan types and interest increased in adjustable-rate mortgages, a trend that Ellie Mae says it will continue to watch.
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Navy Federal Credit Union, Freddie Mac target investors with 5/5 ARM

Plan to establish a “new and liquid market”
Navy Federal Credit Union announced Tuesday that it is partnering with Freddie Mac to offer a 5/5 adjustable-rate mortgage to large institutional investors. According to Navy Federal, the 5/5 ARM has a “history of growth and stability” with the credit union, and plans to grow the product moving forward.
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Waterstone Mortgage unveils zero-down, 20-year, adjustable rate 'wealth building' loan

Loan program designed by AEI's Stephen Oliner and Edward Pinto
The "Wealth Building Loan" requires no down payment, and offers eligible borrowers a 7/1 adjustable rate mortgage with a 20-year amortization. Waterstone said that the "Wealth Building Loan" also eliminates monthly mortgage insurance payments nearly four years sooner than a 30-year conventional loan with a 3% down payment.
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JPMorgan preps second ARM-only jumbo mortgage bond

$372.4 million offering receives triple-A ratings
Kroll Bond Rating Agency, Moody’s Investor Service and Fitch Ratings each issued presale reports on J.P. Morgan Mortgage Trust 2015-IVR2, and each ratings agency awarded triple-A ratings to the majority of the offering’s classes.
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Freddie Mac: Hybrid ARMs are “hot”

Annual Adjustable-Rate Mortgage Survey shows impact of low interest rates
Hybrid adjustable-rate mortgages continue to be the most popular ARM loan product offered by lenders and chosen by borrowers, according to the 31st Annual Adjustable-Rate Mortgage Survey of prime loan offerings from Freddie Mac.
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