Question 1

How long does the fixed period last on an ARM?

Accepted Answer

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

Question 2

What happens if rates rise sharply after adjustment?

Accepted Answer

Caps limit how much your rate can move. A 2/2/5 cap structure limits the first adjustment to 2% and lifetime to 5%.

Question 3

Can I refinance before the ARM adjusts?

Accepted Answer

Yes. Many borrowers refinance into a fixed loan before their adjustment date. Plan ahead — don't wait until the last minute.

Question 4

Do ARMs work with FHA loans in Calexico?

Accepted Answer

Yes. FHA ARMs are available with 3.5% down and a 580 credit score. The same adjustment cap rules apply.

Question 5

Is an ARM a good fit for first-time buyers in Imperial County?

Accepted Answer

It depends on how long you plan to stay. If you expect to move within 7 years, an ARM can cut your starting payment significantly.

ARM Loans in Calexico — Lower Rates, Smarter Entry