Constant Maturity Treasury (CMT)-indexed ARMs
Expand your product line and origination volume with Freddie Mac CMT-indexed ARMs
Adding Constant Maturity Treasury (CMT)-indexed adjustable-rate mortgages (ARMs) to your product line expands your origination volume opportunities. We offer many CMT-indexed ARMs with various rate and cap structures, including 1-year, 3-year and 5-year ARMs, and 3/1, 5/1, 7/1 and 10/1 ARMs.
CMT-indexed ARMs provide an attractive alternative for purchase money and refinance borrowers, allowing them to obtain home financing at initial rates that in many cases are below those for fixed-rate mortgages – a feature particularly attractive to move-up borrowers and those who do not intend to stay in their homes for long periods.
Plus, take advantage of efficiencies with Loan Prospector® automated underwriting technology to quickly and easily assess your CMT-indexed ARMs and streamline the process for your borrowers.
|Eligible Mortgage Products||
|Maximum LTV Ratios|
|Down Payment or Closing Costs||
|Special Delivery Requirements||
|Single-Family Seller/Servicer Guide||
CMT-indexed ARMs help you:
- Increase your origination volume and meet the needs of more homebuyers with multiple CMT-indexed ARMs with various rate and cap structures.
- Take advantage of the benefits of a cash or securities execution, based on your individual balance sheet and risk-based capital needs.
- Commingle ARMs with different assumability periods to increase your competitive execution.
Benefits for Your Borrowers
CMT-indexed ARMs help your borrowers:
- Discover more alternatives when looking for lower initial rates and monthly payments and who understand that their rate will increase.
- Leverage flexible options for refinance or move-up borrowers who may qualify for larger loan amounts.
- Take advantage of financial savings for borrowers who only plan to stay in their homes a short period of time.
For More Information
- Review Guide Chapter 4401, Special Eligibility Requirement for ARMs.
- Call your Freddie Mac representative.
Visit The Learning Center for live and recorded web conferences, access to classroom-style workshops and self-study tools – all designed to help you stay competitive, serve more borrowers and make it easier to do business with us.
The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.