Looking for a quick and easy way to convert your existing Structured Adjustable-Rate Mortgage (SARM) Loan to a fixed-rate product?

Learn more about SARM

The Fannie Mae Structured Adjustable-Rate Mortgage (SARM) product is designed to provide long-term financing with a competitive variable interest rate while providing flexibility in fluctuating interest rate environments. Risks and costs associated with a rising SOFR index rate and replacement cap escrow requirements can be eliminated with a fixed-rate execution. 

In response to volatile markets and to maintain flexibility, we are now offering to convert existing SARM loans to a 5-year fixed rate execution, regardless of the remaining SARM loan term. The process time can be as short as one week to rate lock the converted loan.

With Fannie Mae review, the feature includes the ability to carry over interest-only up to a full term and the flexibility to convert into a 5-year fixed rate, regardless of the remaining loan term.

Other benefits include:

  • Lower Transaction Cost: Closing costs have minimal third-party report costs and refinance fees.
  • Prepayment: No prepayment premium is charged at the time of conversion. 
  • Escrow Release: Replacement cap escrow balance is released after conversion. 
  • Existing Cap: In-place Interest Rate Cap Hedge can be sold and monetized to access currently trapped funds. 

Most importantly, you get peace of mind with the ability to lock in a stable, competitive rate to help achieve your long-term financing goals. Learn more about converting your SARM loan here.

Learn more about available options – reach out to your DUS® Lender today.