Question 1

How often does my rate adjust on a portfolio ARM?

Accepted Answer

Most adjust annually after an initial fixed period of 3, 5, or 7 years. Each lender sets specific adjustment caps and intervals.

Question 2

Can I qualify with seasonal farm income?

Accepted Answer

Yes, portfolio lenders evaluate bank deposits rather than tax returns. Consistent deposits matter more than how you earned the money.

Question 3

What happens if my rate adjusts too high?

Accepted Answer

Refinance before the adjustment hits or when your income documentation improves. Most borrowers exit portfolio ARMs within five years.

Question 4

Do portfolio ARMs have prepayment penalties in Huron?

Accepted Answer

Some do, typically 2-3 years. Ask your lender upfront and negotiate removal if you plan to sell or refinance soon.

Question 5

How much can my rate increase each adjustment?

Accepted Answer

Annual caps typically range from 1-5% per adjustment. Lifetime caps usually limit total increases to 5-6% above your start rate.

Portfolio ARMs in Huron: Flexible Financing for Non-Traditional Borrowers