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San Rafael sits in one of the most expensive housing markets in the country. ARMs let buyers reduce their initial monthly payment when fixed rates are high.
HousingWire flagged a jump in ARM demand as the 30-year fixed hit 6.57%. That shift makes sense — Marin buyers are running the numbers and choosing initial savings.
620 (720+ Jumbo)
Min Credit Score
45%
DTI Max
3, 5, 7, or 10 yrs
Fixed Period Options
Conforming & Jumbo
Loan Types
12 months typical
Jumbo Reserves
Adjustable Rate Mortgages (ARMs) in San Rafael
Most ARMs require a 620 minimum credit score. Lenders want to see stable income, clean payment history, and a debt-to-income ratio under 45%.
Jumbo ARMs — common in Marin — often require 720+ scores and 12 months of reserves. The bar is higher when loan amounts are higher.
Not every lender prices ARMs competitively. Some banks push fixed products because margins are easier to manage on their end.
We shop ARM pricing across 200+ wholesale lenders. The spread between the best and worst ARM quotes can be significant. Rates vary by borrower profile and market conditions.
A 5/1 or 7/1 ARM makes the most sense if you plan to sell or refinance within the fixed window. San Rafael's strong appreciation history supports that exit strategy.
Watch the margin and the index. A low teaser rate with a high margin will hurt you at adjustment. We read the fine print so you don't get caught off guard.
A fixed-rate loan gives you certainty. An ARM gives you a lower rate upfront — and in San Rafael, that gap can mean hundreds per month.
Portfolio ARMs from local lenders offer more flexible terms than agency products. Jumbo ARMs often beat 30-year fixed pricing by a full point or more.
Marin County property values make every basis point count. On a $1.5M loan, a 1% rate difference is $15,000 per year in interest.
San Rafael buyers often have strong income and short time horizons — exactly the profile ARMs were designed for. Many refinance before the first adjustment ever hits.
The rate stays fixed for 5 years, then adjusts once per year. Most San Rafael buyers sell or refi before that first adjustment.
Caps limit each adjustment, typically 2% per change and 5–6% lifetime. Your lender must disclose the worst-case scenario.
Yes. Jumbo ARMs are common in Marin County and often price better than fixed jumbo products. Credit and reserve requirements are stricter.
Probably not. If you're staying 10+ years, a fixed rate removes adjustment risk. ARMs work best with a clear exit plan.
Yes, and many borrowers do exactly that. Your ability to refinance depends on your equity, income, and rates at that time.
Most agency ARMs use the SOFR index. Your margin is added to the index to determine your adjusted rate.