Question 1

What does a 7/1 ARM mean?

Accepted Answer

The rate is fixed for 7 years, then adjusts annually. Your payment won't change at all during that first 7-year period.

Question 2

How much can my rate increase after the fixed period?

Accepted Answer

Most ARMs have caps — typically 2% per adjustment and 5-6% lifetime. Your lender must disclose these before closing.

Question 3

Are ARMs harder to qualify for in Alameda County?

Accepted Answer

No. ARM qualification uses the same income and credit standards as conventional fixed loans in Alameda County.

Question 4

Can I refinance before my ARM adjusts?

Accepted Answer

Yes. Many borrowers refinance into a fixed rate before their adjustment date. There's no penalty on most conventional ARMs.

Question 5

Is an ARM a good fit for San Leandro investment properties?

Accepted Answer

It depends on your hold strategy. Short-term investors often benefit — long-term landlords usually prefer fixed-rate predictability.

ARM Loans in San Leandro: Lower Rates, Smarter Timing