Question 1

How long is the fixed period 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 when my ARM adjusts?

Accepted Answer

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

Question 3

Are ARMs a good fit for Larkspur's market?

Accepted Answer

Often yes. High prices mean the payment savings are substantial. If you plan to sell or refinance within 10 years, an ARM makes strong financial sense.

Question 4

What's the minimum credit score for an ARM in Marin?

Accepted Answer

Standard ARMs require 620. Jumbo ARM programs — common in Marin — typically require 700 or higher.

Question 5

Can I refinance before my ARM adjusts?

Accepted Answer

Yes. Most Larkspur borrowers refinance or sell before the fixed period ends. There's no penalty for paying off early on most ARM programs.

Question 6

How does an ARM differ from a Portfolio ARM?

Accepted Answer

Portfolio ARMs are held by the lender — not sold to investors. They often have more flexible guidelines and unique rate structures.

ARM Loans in Larkspur, Marin County