Question 1

What happens when my portfolio ARM adjusts?

Accepted Answer

Your rate changes based on the index plus margin, limited by periodic and lifetime caps. Most adjust annually after the initial fixed period ends.

Question 2

Can I refinance a portfolio ARM early?

Accepted Answer

Yes, but expect prepayment penalties in years 1-3. Penalties typically decrease each year from 3% to 1% of the loan balance.

Question 3

Do portfolio ARMs work for farmland purchases in Parlier?

Accepted Answer

Raw farmland requires agricultural loans, not residential mortgages. Portfolio ARMs work for homes on agricultural parcels under 5 acres.

Question 4

How much can my payment increase at adjustment?

Accepted Answer

First adjustment caps at 2% above start rate for most loans. Annual caps limit increases to 2% per year with 5% lifetime maximum.

Question 5

Why choose portfolio ARM over fixed bank statement loan?

Accepted Answer

Portfolio ARMs start 1-2% lower than fixed non-QM rates. Choose this if you plan to refinance before adjustments hit.

Portfolio ARM Loans in Parlier: Flexible Financing for Non-Traditional Borrowers