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ARMs start with a fixed rate for a set period — usually 5, 7, or 10 years. After that, the rate adjusts annually based on a market index.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. That spread between fixed and ARM rates is exactly when ARMs become worth a serious look.
620
Min Credit Score
5, 7, or 10 Years
Initial Fixed Period
2/2/5
Typical Cap Structure
200+
Lenders Shopped
Annually
Adjusts After Fixed
Adjustable Rate Mortgages (ARMs) in Colusa
Most ARM programs require a minimum 620 credit score. Stronger scores unlock better initial rates and tighter adjustment caps.
Lenders qualify you at the fully-indexed rate — not the teaser rate. Your debt-to-income ratio needs to hold up at that higher number.
Local decision guide
Use this guide to connect adjustable rate mortgages (arms) eligibility, lender expectations, and local market factors before comparing payment options in Colusa.
ARMs start with a fixed rate for a set period — usually 5, 7, or 10 years. After that, the rate adjusts annually based on a market index.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. That spread between fixed and ARM rates is exactly when ARMs become worth a serious look.
Most ARM programs require a minimum 620 credit score. Stronger scores unlock better initial rates and tighter adjustment caps.
Not every lender prices ARMs competitively. Some push fixed rates because they're easier to sell on the secondary market.
At SRK CAPITAL, we shop ARM programs across 200+ wholesale lenders. Colusa County borrowers get options most retail banks never show them.
ARMs make the most sense when you have a clear exit plan. Selling in 5 years? A 5/1 ARM saves you real money each month.
Watch the caps. A 2/2/5 cap structure means your rate can jump 2% at first adjustment. Know your worst-case payment before you sign.
A 30-year fixed gives you certainty. An ARM gives you a lower initial rate — and that gap matters more when fixed rates are elevated.
Jumbo ARM borrowers often see the biggest savings. On a large loan balance, even a half-point difference adds up to thousands per year.
Colusa is a smaller rural market in the Sacramento Valley. Buyers here often have shorter ownership timelines or are purchasing investment properties.
Rural properties can sometimes limit lender options. Working with a broker who accesses wholesale channels is especially valuable in Colusa County.
Common options are 5, 7, or 10 years. After that, the rate adjusts once per year based on a market index.
Caps limit how much your rate can move at each adjustment and over the life of the loan. A 2/2/5 cap is typical on conventional ARMs.
Yes. Many borrowers plan to refinance before the fixed period ends. There's no guarantee rates will be favorable at that time.
They can. Rural buyers with shorter timelines or investment goals often benefit from the lower initial rate an ARM provides.
Most conforming ARM programs require at least 620. Higher scores typically qualify for better initial rates and terms.
We compare ARM programs across 200+ wholesale lenders. That means more options and sharper pricing than a single retail bank offers.