Get the Facts about ARMs Loans


Discover the Flexibility and Potential Benefits of Adjustable-Rate Mortgages (ARMs)!

Unlike traditional fixed-rate mortgages, ARMs feature an interest rate that can vary over the life of the loan. Often referred to as variable-rate or floating mortgages, ARMs offer an exciting opportunity for savvy borrowers.

Here's how it works: the interest rate on an ARM is tied to an index, and it may fluctuate periodically. This means that as the index changes, your interest rate will adjust accordingly.

But don't worry, ARMs come with built-in protection. They often include rate caps that limit how much the rate can increase at any given time or in total. This feature provides peace of mind and ensures you can handle potential rate increases.

An ARM can be a smart financial move if you have a specific time frame in mind for keeping the loan and feel confident about managing potential rate adjustments. It's important to carefully consider your financial goals and plans before choosing an ARM.

Ready to explore the possibilities? Speak with a mortgage professional today to learn more about adjustable-rate mortgages and how they might align with your needs. Embrace the flexibility, seize the potential benefits, and embark on your homeownership journey with confidence!

✅ Benefits of Contract Loan Processing for VA Loans

  1. Specialized VA Knowledge

    • VA loans have unique requirements (COE, residual income, funding fee calculations, appraisal requirements).

    • A contract processor experienced in VA loans can spot potential issues early and streamline the process.

  2. Cost Savings for Lenders

    • No need to hire full-time staff; processors are paid per file.

    • Helps smaller brokerages or lenders manage fluctuating loan volumes without carrying extra payroll.

  3. Faster Turn Times

    • Contract processors often work remotely and are paid per closed file, so they’re incentivized to move loans quickly.

    • They can push COE requests, follow up on VA appraisals, and ensure VA-specific forms (26-1880, 26-8923) are completed on time.

  4. Compliance & Accuracy

    • VA has strict guidelines (e.g., allowable fees, seller concessions, and veteran protections).

    • A skilled processor reduces risk of compliance errors that could lead to loan buybacks or funding delays.

  5. Scalability

    • During high volume seasons (e.g., rate drops, PCS military moves), lenders can bring on extra processors quickly without long-term HR commitments.

  6. Reduced Loan Officer Burden

    • Lets LOs focus on originating, networking, and serving clients while the processor handles gathering DD-214s, income docs, pest inspection reports (if required), and underwriting conditions.

  7. Improved Borrower Experience

    • Veterans and active-duty borrowers often value clear communication and speed.

    • A processor who knows the VA process can anticipate documentation needs and prevent last-minute surprises.


👉 In short: Contract processors help lenders stay lean, compliant, and efficient, while ensuring veterans have a smoother experience.

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