RAY,
I think I know who you are talking about.
It’s a portfolio loan that they keep, but isn’t it a max of 75% of current value ?

A 5YR ARM today is a very dangerous product.
What if rates are 10% in 6 years ?

For loans under $546K…
I have 30 Year fixed rates at 5.00%. You can buy down to 4.875% for a tiny fee.
Without 20% equity, PMI is added.

With 40%+ equity rates are 4.875%

Almost any rate can be shown, the key is the cost to get that rate.

With historically low rates, I think it is insane to hope for a tiny further decline that may or may not happen.

On a historical scale of 1 to 100 of mortgage rates, with 100 being the highest we are currently at 1. People want more. HLS