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The Best ARM Lenders of 2019
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The 30-year adjustable rate mortgage — often referred to as an ARM — is a popular loan option when interest rates are increasing. These mortgages offer initial periods where the interest rate that borrowers pay is lower than those of 30-year fixed mortgages — giving borrowers the lowest possible payment for a short period of time. After that, the interest rate rises and adjusts over time based on market conditions.
These initial periods are usually three, five or seven years, and as long as borrowers have a strategy for refinancing or selling the property before the lower fixed rate period is over, it can be a valuable money-saving mortgage option.
LendingTree reviewed data from hundreds of lenders across the nation that offer 30-year adjustable rate mortgage loans to come up with the top five lenders of 2019. Our ratings are based primarily on the interest rate terms offered to purchase borrowers on LendingTree over the last 12 months. Then we take into account the quality of information each lender provides on their websites. You can read up on our full methodology below.
Here are the top five 30-year adjustable rate mortgage lenders in 2019.
| Home Point Financial Corporation
Home Point Financial was founded in 2015 and is licensed to do business in all 50 states. The website provides an extensive library of educational tools and articles covering basic topics for first-time homebuyers and more in-depth subjects that will appeal to experienced borrowers.
Home Point Financial Corporation offered a median 30-year ARM rate of 4.91% on the LendingTree platform.
Basic program information can be found by clicking through the easy-to-find “Learn More” buttons within the “I Want to Purchase” and “I Want to Refinance” sections of the homepage. Each program has its own drop-down menu revealing additional information about who the loan program is good for and minimum qualifying requirements.
The “Resource Center” and “Home Loans” sections provide a variety of detailed articles about homebuying and mortgage financing related topics, with calculators and videos to provide readers with a number of different ways to become educated. The “Apply Now” buttons are featured prominently on the site and are easy to find.
| U.S. Bank
U.S. Bank originally started as First National Bank of Cincinnati in 1863. Besides mortgages, Minnesota-based U.S. Bank offers traditional consumer and business banking products.
U.S. Bank offered a median 30-year ARM rate of 4.71% on the LendingTree platform.
The home page has two links related to mortgages on the home page, a “Buy a Home” button and a “Use your equity” button. The basic loan program and type information is not easy to find because it doesn’t appear unless the “Compare options” button is clicked.
There are also articles with additional information discussing important details that homebuyers and homeowners can use to be informed about purchase and refinance loan options. There is no “Apply Now” button on the main website landing page, but there is an “Apply for a mortgage” link that can be found after clicking on the “Buy a home” button.
| Ruoff Home Mortgage
Ruoff Home Mortgage started doing business in 1984 in Fort Wayne, Ind. The company offers mortgage banking services at its 55 branches located in Indiana, Ohio, Michigan, Kentucky and Florida.
Ruoff Home Mortgage offered a median 30-year ARM rate of 4.97% on the LendingTree platform.
The home page of the website features their selection of loan types under the “Loan Programs” tab, with basic explanations of who can benefit from loan type. More detailed articles about a variety of homebuying topics can be found under the “Blog” dropdown, and the “Resources” tab features financial calculators and videos providing additional educational material for users.
There is no “Apply Now” button, but there is an “Apply For a Mortgage Today” button bar at the bottom of the landing page. While it is easy to find, it may be missed the first time a user goes to the site because of the dark green color and placement at the bottom of the page, especially if a user starts clicking the more prominent menu choice tabs at the top of the page.
| ConsumerDirect Mortgage, A Division of FirstBank
ConsumerDirect Mortgage is a division of FirstBank, which started in 1906 under the name Farmers State Bank in west Tennessee. FirstBank provides a variety of financial services and products while ConsumerDirect Mortgage provides mortgage products and services for its customers.
ConsumerDirect Mortgage, a Division of FirstBank offered a median 30-year ARM rate of 4.91%
The homepage for ConsumerDirect Mortgage indicates the loan product types offered, but does not provide any detail about the terms of the loans offered. There are no calculators or educational content. The homepage does not feature an “Apply Now” button, although there is a ConsumerDirect Mortgage link that takes the customer to an online loan application portal.
| Fidelity Bank
Fidelity Bank opened its doors in 1888 under the name Fidelity Cooperative Bank. It is a full service depository bank, offering standard banking products such as checking and savings accounts, and investment and insurance services, in addition to mortgage financing.
Fidelity Bank offered a median 30-year ARM rate of 4.92% on the LendingTree platform.
The homepage doesn’t reference mortgages specifically, but the information about the bank’s mortgage offerings is found by clicking on the “Our Solutions” button and selecting “Mortgages.” There, the user will find very basic information about mortgage programs and loan types.
There are financial calculators in this section as well, and a small “Apply Now” link next to the first three categories of loan types. There are informative mortgage and homebuying-related articles in the links titled “Home is where the SMART is,” although the reader doesn’t know what topic is until clicking the link.
How we choose our “best” lenders
A mortgage is likely the largest debt you will take on in your lifetime. That’s why it’s so important to gather as much information as possible.
Our “best” winners aren’t selected based on rate alone, but also with a unique rating developed by our editorial staff called “Online Information Quality,” or OIQ. We’ve taken extra time to review the information you can access online, including how easy it is to access loan product information, use mortgage tools like mortgage calculators and fill out a loan application.
To determine the best 30-year adjustable rate mortgage lenders, we analyzed data from actual loan terms offered to borrowers on LendingTree by lenders. We chose the top five lenders by rate for the last 12 months. Then we selected for lenders that originate mortgages in at least 25 states. From that list, we gave each lender an OIQ rating based on answers to the following when accessing the lender’s main website. One point was given for each yes answer.
Is there general product information on the website?
If the website features both basic terms of the loan (30 year, 15 year, adjustable rates) and program offerings (FHA, Conventional, FHA, VA), it scores a full point.
Is there general home loan information on the website?
Borrowers can make the most informed decisions if they have additional information regarding mortgages in the form of explanation articles, FAQ sections or links to an information blog. Sites that have additional mortgage information score an extra OIQ point.
Is the general home loan information easy to find?
If the information is available with less than two clicks on the home page, it scores an extra point, since a consumer will be able to get the information easily without having to search extensively through the site.
Are there any education tools (e.g. loan calculators) on the page or at least one click away from the home page?
Mortgage calculators, home value estimators and other tools help consumers to make educated decisions, so landing pages that feature them score an additional OIQ point.
Is it easy to find the “apply now” button?
Mortgage users in the digital age want an quick online way to apply for a mortgage, so if the “Apply Now” button is easy to find on the home page, it will be easy for a consumer to apply once they’ve gotten the information they need to proceed to the next step in the mortgage process.
The information in this article is accurate as of the date of publishing.