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Ready to start your home buying journey? Apply now and get pre-approved for your mortgage.
Purchase Rates
Know the rates, know your options. Start building your homeownership plan today.
Monthly Mortgage Calculator
Get a clear picture of your monthly mortgage payment using your rate, credit score, and down payment information.
Affordability Calculator
Not sure what fits your budget? This calculator factors in your income, debts, and down payment to help you find the right price range.
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Ready to lower your rate or tap into your equity? Apply now and start your refinance journey with confidence.
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Refinance Mortgage Calculator
Wondering how refinancing will affect your monthly payments? See how much you can save.
Cash-Out Refinance Calculator
See how much equity you can tap into. Estimate your new mortgage payment and compare loan options.
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Free, interactive mortgage calculators that can help you along the journey toward your home ownership goals.
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Learn more. Stress less. Our blog breaks down what you need to know to buy, refinance, or plan ahead.
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About
Jumbo 5/1 ARM
<p>This program offers an extra low initial interest rate for loan amounts over $424,100 (or $636,150 in some areas). </p>
Benefits
Lower Initial Interest Rate
Enjoy lower monthly payments during the first 5 years compared to fixed-rate jumbo loans.
Build Equity Faster
Lower initial payments allow for potential extra payments to build equity more quickly.
Flexibility
Ideal for those planning to sell or refinance within the first 5 years.
Higher Loan Limits
Finance luxury properties that exceed conventional loan limits.
Jumbo 5/1 ARM Loan Information
<p>A Jumbo 5/1 ARM is designed for financing high-value properties that exceed conventional loan limits. To better understand how this loan can help you purchase your luxury home, you can start by <a href="/apply">speaking to one of our seasoned experts</a>.</p>
How Jumbo 5/1 ARMs Work
<ul><li>Fixed interest rate for the first 5 years</li><li>Annual rate adjustments after the initial fixed period</li><li>Exceeds conforming loan limits (currently $766,550 in most areas for 2024)</li><li>Designed for high-value and luxury properties</li></ul>
Eligibility Criteria
<ul><li>Credit Score: Typically 700 or higher</li><li>Debt-to-Income Ratio: 43% or less in most cases</li><li>Down Payment: Usually 10% to 20%</li><li>Income Verification: Extensive documentation required</li><li>Asset Reserves: Several months of mortgage payments</li></ul>
Property Types
<p>Eligible properties may include:</p><ul><li>Single-family homes</li><li>Condos</li><li>Multi-unit properties</li><li>Primary residences</li><li>Second homes</li><li>Investment properties (requirements may vary)</li></ul>
When to Choose a Jumbo 5/1 ARM
<p>A Jumbo 5/1 ARM might be the right choice in several scenarios:</p>
Ideal Scenarios
<ul><li>Short-term ownership (planning to move within 5 years)</li><li>First-time buyers or those upgrading to a luxury home</li><li>Anticipating significant income increase</li><li>Real estate investors looking for better initial cash flow</li><li>Planning to refinance before the rate adjusts</li><li>Seeking a competitive advantage in a hot real estate market</li></ul>
Comparing with Fixed-Rate Jumbo Mortgages
<p>Key differences:</p><ul><li>Lower initial interest rate for Jumbo 5/1 ARM</li><li>Potential for rate changes after 5 years for ARM</li><li>Fixed-rate offers predictable payments for the entire loan term</li><li>ARM may offer more flexibility for short-term homeownership</li></ul>