Question 1

How much higher are portfolio ARM rates versus conventional?

Accepted Answer

Expect 1.5-3% above conventional ARM rates depending on your profile. Stronger borrowers pay less premium.

Question 2

Can I refinance out before the rate adjusts?

Accepted Answer

Yes, but watch for prepayment penalties in years 1-3. Most charge 3-5% of the balance if you pay off early.

Question 3

Do portfolio ARM lenders work with recent bankruptcies?

Accepted Answer

Many will consider bankruptcies discharged 2+ years ago. Each lender sets their own seasoning requirements.

Question 4

What happens when the rate adjusts on my Long Beach property?

Accepted Answer

Your rate moves up or down based on an index plus a margin. Caps limit how much it can change annually and over the loan's life.

Question 5

Are portfolio ARMs available for Long Beach investment properties?

Accepted Answer

Yes, they're commonly used for rentals. Many lenders focus solely on the property's rental income rather than your personal income.

Portfolio ARMs in Long Beach: Flexible Financing Beyond Agency Rules