Question 1

How much do rates increase at adjustment?

Accepted Answer

Caps limit changes to 2% per adjustment and 5-6% lifetime. Your initial margin and index determine the exact rate at each adjustment period.

Question 2

Can I refinance before the ARM adjusts?

Accepted Answer

Yes, most borrowers refinance during the fixed period. No prepayment penalties exist on most portfolio ARMs I close in Clovis.

Question 3

What income documentation do portfolio ARM lenders require?

Accepted Answer

It varies by lender and loan purpose. Some accept bank statements, others want tax returns, and a few rely heavily on asset verification instead.

Question 4

Do portfolio ARMs work on primary residences in Clovis?

Accepted Answer

Yes, though they're more common on investment properties. If you qualify for conventional, that usually costs less for primary homes.

Question 5

How does property type affect portfolio ARM approval?

Accepted Answer

Unusual properties get easier approval with portfolio ARMs. Standard single-family homes might qualify for cheaper conventional options first.

Portfolio ARMs in Clovis: Flexible Financing Beyond Conventional Limits