Freddie Mac SOFR ARMs Available 12-23
We are pleased to announce the upcoming release of the Secured Overnight Financing Rate (SOFR) indexed ARM effective Wednesday, 12/23/2020.
With the retirement of the LIBOR-indexed ARM, FHLMC has transitioned to the SOFR-indexed ARM. Conforming and Super Conforming 5/6, 7/6 and 10/6 Month ARMs will be available on the eligible loan product offerings as follows:
- Freddie Mac Conforming
- Freddie Mac Home Possible
SOFR ARM Characteristics |
|||
5/6 Month ARM |
7/6 Month ARM |
10/6 Month ARM |
|
Adjustment Caps |
2/1/5 |
5/1/5 |
5/1/5 |
ARM Index |
30-day Average SOFR |
||
Lifetime Floor |
For ARMs with Lifetime Floors, the Lifetime Floor must equal the Margin stated in the Note. |
||
Lifetime Ceiling |
The Lifetime Ceiling must equal the sum of the Note Rate at origination plus the Life Cap stated in the Note. |
||
Margin |
2.75% |
2.75% |
2.75% |
Convertible |
No |
No |
No |
Look Back Period |
45 days |
45 days |
45 days |
Prepayment Penalty |
No |
No |
No |
For additional requirements, refer to the Adjustable Rate Mortgage topic in Knowledge Owl.
Please contact your Regional Account Manager should you have any questions related to this Client Announcement.
Freddie Mac SOFR ARMs Available 12-23 | Client Announcement 2020-12-22