Question 1

What is a 7/1 ARM and how does it work?

Accepted Answer

The rate stays fixed for 7 years, then adjusts annually. Adjustment is tied to an index like SOFR plus the lender's margin.

Question 2

Are ARMs risky on a $2M Tiburon home?

Accepted Answer

Risk depends on your timeline. If you plan to sell or refi before the fixed period ends, an ARM can be the smarter financial move.

Question 3

What rate caps protect me on an ARM?

Accepted Answer

Most ARMs have a 2/2/5 cap structure — 2% initial, 2% per adjustment, 5% lifetime. Always verify the specific caps with your lender.

Question 4

Can I get a jumbo ARM in Marin County?

Accepted Answer

Yes. Jumbo ARMs are common in Marin. Expect stricter credit and reserve requirements than conforming ARM products.

Question 5

How do I qualify for an ARM with stock-based income?

Accepted Answer

Lenders want 2 years of vesting history and may average or discount RSU income. A portfolio lender often gives more credit for equity comp.

Question 6

Should I choose an ARM or fixed loan in Tiburon?

Accepted Answer

Depends on how long you plan to stay. Short horizon favors an ARM. Staying 10+ years usually favors the certainty of a fixed rate.

ARM Loans in Tiburon — Lower Rates, Smarter Borrowing