March 2nd, 2011 11:46 AM by Eric Fang
Q: Why there is no closing cost rate for 5/1 ARM?
A: This is because of the recent investor pricing change.Since the beginning of this year, the investor(hence Fannie Mae)will not have higher rebates for ARM products this year.
For any investment property, since Fannie Mae charges 1.75%,usually we need at lesat 2.75% rebate to do a no closing cost loans, which is almost impossible.
But we do have some portofolio lenders who can do no costrefi for ARM, but the rates are too high.
That's why most loan agent will tell you that we can notdo no-cost refi for ARM now.