Question 1

How long does the fixed period last on an ARM?

Accepted Answer

Common terms are 5, 7, or 10 years fixed. After that, the rate adjusts annually based on a market index.

Question 2

What index do ARM rates adjust to?

Accepted Answer

Most ARMs use SOFR as the benchmark index. Your rate equals the index plus a lender margin.

Question 3

Can I refinance before my ARM adjusts?

Accepted Answer

Yes. Many Brawley borrowers plan to refinance before the fixed period ends. No prepayment penalty on most conforming ARMs.

Question 4

Do ARMs work for lower-priced Imperial County homes?

Accepted Answer

They do. The monthly savings are smaller on lower balances, but ARMs still reduce your entry payment meaningfully.

Question 5

What's the worst-case rate increase on an ARM?

Accepted Answer

Most conforming ARMs cap lifetime increases at 5% above the start rate. Model that payment before you commit.

Question 6

Is an ARM harder to qualify for than a fixed loan?

Accepted Answer

Lenders qualify you at the fully indexed rate, not just the start rate. Your DTI must hold up at the higher number.

ARM Loans in Brawley, CA — Lower Rates, Smarter Entry