7/1 and 10/1 Jumbo ARM Programs

House with flower in front yard.

Looking for an alternative to a 30 year mortgage? Ask your lender or broker about their 7 and 10 year adjustable rate mortgage products.

Depending upon current market conditions, 7/1 and 10/1 jumbo ARM products can be a happy median between the lower rates and higher volatility of shorter term ARM products and the higher rates and raised stability of fixed rate mortgage products. The biggest item to take into consideration is whether the savings justifies the risk. The greatest benefit of 10 year jumbo ARM and 7 year jumbo ARM loans is the lower introductory rate that they typically offer versus that of long term fixed rate products. And since many people do not stay in the same house for more than seven years, these programs can be a perfect solution. Call one of the mortgage companies listed in the survey (see below) for more information.

Potential Benefits

  • Low introductory rate fixed for seven or ten years.
  • Various index based options to help you find the right balance of minimizing risk and getting a great rate (i.e. LIBOR vs. Treasury)…Ask your Mortgage Professional for details.
  • Interest Only options exist for qualified borrowers.

Some Items to Consider

  • Depending upon the market, 7 year jumbo adjustable rate mortgage and 10 year jumbo adjustable rate mortgage rates are not always lower than that of fixed rate products. Be sure to compare rates between programs!
  • If you are still concerned about the potential adjustments after the first 7 or 10 years, you may want to look into a 30 year fixed jumbo mortgage which protects you from interest rate risk.
  • Paying points on ARM products can rapidly reduce your interest rate. You will just need to analyze how long it will take you to make back the upfront costs in potential savings down the road.

Check Rates on ForTheBestRate.com – View Jumbo ARM Mortgage Rates using the Rate Tables on This Site

When it comes to finding some of the best mortgage rates in the industry ForTheBestRate.com has got you covered. You can compare pricing from multiple lenders and brokers offering jumbo ARM products. The company that we receive the rate data from does not always publish 10/1 ARM pricing so you’ll need to contact the various companies listed for pricing on that product. You can typically find 7 year jumbo ARM rates. Simply select “7/1 ARM” from the product menu and then type in your loan amount. You’ll need to verify pricing with the various companies listed.

Types of Properties and Occupancy: Most lenders who offer 7/1 and 10/1 jumbo ARM programs will finance single family homes, duplexes, 3-4 unit properties, condos, and townhomes. They typically offer these programs for primary residences, second homes, and rental properties. Rates for condos, multi-family homes, vacation homes, and investment properties are usually higher and may require a greater equity position. Call the various lenders and brokers in the rate survey for more information.