Question 1

What does the 7/1 in a 7/1 ARM mean?

Accepted Answer

Your rate stays fixed for 7 years, then adjusts annually. If you sell before year 7, you never see an adjustment.

Question 2

Can I refinance out of an ARM before it adjusts?

Accepted Answer

Yes. Many borrowers refinance before the fixed period ends. Rates and costs at that time will determine if it makes sense.

Question 3

How much can my rate increase at first adjustment?

Accepted Answer

That depends on your cap structure. A 2% initial cap is common — meaning your rate can't jump more than 2% at first adjustment.

Question 4

Are ARM loans available in Wasco with low down payments?

Accepted Answer

Yes. Conforming ARMs in Kern County can go as low as 5% down. Credit and income still have to qualify.

Question 5

Is an ARM riskier than a fixed loan?

Accepted Answer

There's more rate uncertainty after the fixed period. Caps limit how high it can go, but a fixed rate removes that variable entirely.

ARM Loans in Wasco, CA — Lower Rates, Smarter Terms