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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

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