OrangePath's rate sheet for Thursday, October 15 has one line worth a closer look: a 3/1 adjustable-rate mortgage (ARM) at a 6.000% rate, 6.235% APR. That price assumes 30% down and a 780+ credit score on a loan program that does not verify income, and it is the same for a primary home or an investment property. The rate is fixed for the first 3 years and then adjusts once a year, so the rate and the monthly payment can go up.
On the same sheet, the income-verified 30-year fixed is a 6.750% rate, 6.938% APR (25% down). Under the same pricing scenario, the 3/1 ARM's rate is 0.75 percentage point lower.
The full rate sheet
The October 15 rate sheet
Pricing scenario: Home purchase · loan amount $300,000 · single-family home · credit score 780+ · 30-day rate lock
| Loan | Down | Term | Rate | APR |
|---|---|---|---|---|
| Primary home, income verified | 20% | 15-year fixed | 6.125% | 6.430% |
| Primary home, income verified | 25% | 30-year fixed | 6.750% | 6.938% |
| Investment property, income verified | 25% | 30-year fixed | 7.125% | 7.372% |
| Primary home, no income verification | 30% | 3/1 ARM | 6.000% | 6.235% |
| Investment property, no income verification | 30% | 3/1 ARM | 6.000% | 6.235% |
Rates change daily. Your rate depends on your credit score, down payment, property type and loan amount; ask me for a quote on your scenario. This is not a commitment to lend.
Fixed-rate loans are repaid in equal monthly payments of principal and interest over the full term (180 payments for 15 years, 360 for 30 years). The 3/1 ARM has a fixed rate for the first 3 years and then adjusts once a year for the remaining 27 years of its 30-year term, so the rate and the monthly payment can go up. Taxes and insurance are not included; the actual payment will be higher.
Full rate and APR disclosure
Interest rates and annual percentage rates (APRs) are based on current market rates, are for information purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. This is not a credit decision nor a commitment to lend. Depending on loan guidelines, mortgage insurance may be required. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. Additional loan programs may be available. APR reflects the effective cost of your loan on a yearly basis, taking into account such as interest, discount points (also referred to as "points") and loan-origination fees. One point is 1% of the mortgage principal amount (e.g., $1,000 on a $100,000 loan). Your monthly payment is not based on APR, but instead based on the interest rate on your note. Adjustable-rate mortgage (ARM) rates assume no increase in the financial index after the initial fixed period. ARM rates and monthly payments are subject to increase after the fixed period. ARMs assume a 30-year term. OrangePath Financial Inc NMLS #2070941, headquartered at 3635 Peachtree Industrial Blvd Ste 250, Duluth, GA 30096, is an Equal Housing Lender. Some products not available in all states. Program subject to change. Some restrictions may apply. Underwriting terms and conditions apply and not all applicants will qualify.
OrangePath Financial Inc., NMLS #2070941, 3635 Peachtree Industrial Blvd, Ste 250, Duluth, GA 30096, is an Equal Housing Lender. Georgia Residential Mortgage Licensee #2070941. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, #60DBO-149772.
What to read carefully:
- The rates are priced for a $300,000 loan on a single-family home, a 780+ credit score and a 30-day lock, and were good for October 15 only. A different score, down payment, property type or loan amount means a different rate.
- The APR includes interest, points and loan fees, so it is the better number for comparing loans.
- The 3/1 ARM's APR assumes the index does not rise after the first 3 years. After that the rate resets to the market, and the payment can go up.
Why a 3/1 ARM looks good right now
Rates are still high. Freddie Mac's national average 30-year fixed rate was 7.40% on October 15, unchanged from the week before; a month earlier (September 17) it was 6.95%. That is a national average for borrowers whose situations differ from this sheet's scenario, so treat it as background.
More buyers are choosing ARMs. The Mortgage Bankers Association's survey for the week ending October 9 put ARMs at 10.5% of all mortgage applications, the highest share since October 2025. MBA deputy chief economist Joel Kan said borrowers continue to rely more on ARM loans to help lower their monthly payments. The same week, the national average contract rate on a 5/1 ARM was 6.54% (a 5/1 is fixed for 5 years, so it is not a like-for-like comparison).
The lower rate during the fixed period is real money. If you already expect to sell, move up, or refinance when rates come down within 3 to 5 years, the lower rate in the first 3 years is interest you keep.
How a 3/1 ARM works
- What 3/1 means: the rate is fixed for 3 years, then adjusts once a year for the remaining 27 years of a 30-year term.
- The new rate = an index + a margin. The margin is set when you sign; the index moves with the market. Caps limit each change: a cap on the first adjustment, a cap on each later adjustment, and a lifetime cap.
- The key step: the lender must give you a Loan Estimate within three business days of your application. On an ARM, page 2 ends with two extra tables, including the Adjustable Interest Rate (AIR) table: which index, what margin, when the first change happens, how much it can rise each time and the highest it can go. Before you sign, I walk you through the worst case.
- Ask about prepayment penalties. Some no-income-verification and investment Non-QM loans have a prepayment penalty. If you plan to refinance or sell within a few years, ask first.
Who a 3/1 ARM fits, and who it doesn't
A good fit:
- Buyers who expect to sell, move up, or refinance when rates fall within 3 to 5 years
- Investors who care most about cash flow in the first few years
- Self-employed buyers whose tax returns understate their income but who have a large down payment (the no-income-verification program)
Probably not a fit:
- People who plan to stay put and don't want rate risk
- Buyers whose payment is already near the top of their budget and couldn't absorb an increase after year 3
- Buyers with less than 30% down (the ARM price on this sheet assumes 30% down)
One caution: refinancing when rates fall is a plan, not a promise. Rates could be higher in 3 years, and a refinance means qualifying again.
How to apply for a mortgage: 8 steps from pre-approval to closing
- 1. A 5-minute call or WeChat. Tell me your goal (a home to live in or an investment), budget, down payment and how you earn your income (W-2, self-employed or retired), and I'll tell you which loans fit.
- 2. Gather documents. Income-verified loans usually need two years of tax returns and W-2s, recent pay stubs, two months of bank and asset statements and ID. No-income-verification programs skip tax returns and W-2s; which asset, bank statement or rent documents they need depends on the program and your situation.
- 3. Credit check and pre-approval letter. With your permission I pull credit, review your documents and issue a pre-approval letter for your offers. Get pre-approved
- 4. Tour, offer, sign a contract. The contract sets the financing terms and deadlines. I'm also a Georgia real estate agent, so the offer and the loan timeline are planned together.
- 5. Apply and get your Loan Estimate. After the contract you formally apply and receive a Loan Estimate within three business days. Compare the rate, APR, points and fees; on an ARM, read the AIR table on page 2.
- 6. Lock your rate. Rates change every day; lock when you're ready. This sheet is priced for a 30-day lock.
- 7. Appraisal and underwriting. An appraiser values the home and an underwriter reviews your file. There may be requests for more documents; answering quickly keeps you on schedule.
- 8. Closing Disclosure and closing. You receive the final Closing Disclosure at least three business days before closing; check it against the Loan Estimate, then sign. In Georgia a closing attorney runs the closing; in California it usually goes through an escrow company.
How to get a better rate
The sheet is priced for a 780+ credit score and a $300,000 loan. Your rate depends mainly on:
- Credit score: higher scores get better pricing. Don't open new cards or take on new debt before you apply.
- Down payment: more down means less risk and better pricing.
- Property type and use: single-family, townhome or condo, primary home or investment all price differently.
- Loan amount: the 2026 conforming limit across metro Atlanta is $832,750, and above that a loan is jumbo; California limits vary by county, see California home loans.
- Points: you can pay points to buy the rate down, or skip points and take a slightly higher rate; the Loan Estimate shows both.
Find out what rate you would get
Send me your situation: a home to live in or an investment, the rough price and down payment, how you earn your income and roughly your credit score. I'll price your scenario and put a 3/1 ARM next to a 30-year fixed, including the worst case after year 3.
Georgia loan limits and closing costs are on Atlanta home loans; no-income-verification options are on self-employed and bank statement loans and DSCR investment property loans; the latest rate sheet is on the loans page, updated every time a new sheet comes out.
