Question 1

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

Accepted Answer

The rate is fixed for 7 years, then adjusts once per year. Most Ross buyers sell or refinance before the first adjustment.

Question 2

What are rate caps on an ARM?

Accepted Answer

Caps limit how much your rate can change. A 2/2/5 cap means 2% at first adjustment, 2% per year after, 5% lifetime max.

Question 3

Do ARMs work for jumbo loans in Ross?

Accepted Answer

Yes — jumbo ARMs are common in Marin County. Lenders often offer competitive initial rates on loan amounts above conforming limits.

Question 4

What credit score do I need for a jumbo ARM?

Accepted Answer

Most jumbo ARM programs require 720 or higher. Some portfolio lenders go lower with strong assets and low DTI.

Question 5

Can I refinance before my ARM adjusts?

Accepted Answer

Yes, and many borrowers plan for it. Watch market conditions and refi costs to time it right.

Question 6

Is an ARM risky if I stay longer than planned?

Accepted Answer

It can be. Lifetime caps protect you from extreme rate spikes, but budgeting for a higher payment is smart if plans change.

ARM Loans in Ross, CA: Lower Rates, Smarter Strategy