Affordability, more than ever, is a conversation at the forefront for all involved in the real estate industry – especially home buyers. With the increase in home values and interest rates in this current housing environment, it is important to Pacific Home Loans that we consider all loan options and opportunities to save our customers money and make home ownership more obtainable. In fact, Pacific Home Loans offers some of the lowest down payment options for Jumbo (ARM) Programs.

Get to know Pacific Home Loans Jumbo ARMs (Adjustable Rate Mortgages).

The ARMs of today are not the same as those that earned a bad reputation in the early 2000’s prior to the implementation of the safeguards of the Mortgage Reform Act. Today’s ARMs are required, by federal law, to limit the risk exposure to customers, with caps set on the rate adjustment amounts and periods and no pre-payment penalties allowed. With rising interest rates, obtaining a discounted rate by choosing an Adjustable Rate Mortgage is attractive – so much so that ARM loan fundings are up 75% in 2022 compared to preceding years.

5 Reasons to consider a Pacific Home Loans Jumbo ARM

1) Lower Down Payments

Our Jumbo ARM Programs offer lower down payments than our Jumbo Fixed Rate loans for Primary and Second Home occupancy purchases.

Minimum Down Payment % Maximum Loan Amount $
10.01% $1,000,000
15% $3,000,000
25% $5,000,000

2) Lower Interest Rates

A jumbo adjustable-rate mortgage (ARM) usually offers a lower initial rate than most fixed rate loans, keeping payments low for as long as 5, 7, or 10 years.

The following is a comparison of monthly principal and interest (P&I) payments for a home purchase jumbo loan amount of $1,000,000 with a 30 Year Fixed Rate loan and a 10 Year Adjustable Rate.*

Loan Details 30 Year Fixed at 4.25% APR 4.39% 10 Year ARM at 3.75% APR 3.99%
Monthly Principal & Interest $4919.39 $4631.15
Savings per Month $288.24
Savings per Year $3,458.88
Savings over 1st 10 Years $34,588.80
* The fixed rate ARM comparison is based on a $1,000,000 loan amount with 20% down. Prevailing rates as of 8-17-22. Rates are subject to change with market conditions without notice. Lower down payment options available with loan amounts up to $3,000,000 for qualified applicants with a higher interest rate. Loan programs available with a minimum of a 700 FICO score. The example is based on a 740 FICO score. For information purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval. Certain Restrictions apply.

3) Qualify for a Higher Purchase Price

Lower interest rates mean a lower monthly mortgage payment, which reduces your total Debt to Income ratios – possibly increasing your maximum purchase price potential.

4) Home Loan Retention Statistics

Statistics show the average life span of a 30-year mortgage is less than 10 years. This means that the vast majority of mortgage holders pay off their loans in 10 years or less by way of selling the property, refinancing to a lower interest rate or to pull cash out, or paying off the loan with other means. So the chances are great that you’ll be in a new mortgage before the end of the initial fixed rate period of your loan.

5) Customizable Initial Fixed Rate Options

Choose an initial fixed rate to match your investment strategy. Our most popular options include a 5 Year ARM, 7 Year ARM, and 10 Year ARM. Select the option that provides you with the most security but also fits your plan. Why pay a higher price for a fixed rate mortgage if you do not plan to own the property in less than 5, 7, or 10 years? For shorter term strategies, we have shorter ARM options available as well.

When you find the perfect home, you know it immediately. The beautiful design, thoughtful amenities, and just-right location were all meant for you. Finding the right financing should be just as clear.

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