Question 1

How do Portfolio ARMs differ from standard adjustable mortgages?

Accepted Answer

Portfolio ARMs stay with the original lender instead of being sold to Fannie Mae or Freddie Mac. This allows more flexible underwriting and customized terms that standard ARMs cannot offer.

Question 2

What income documentation works for Portfolio ARMs in Tiburon?

Accepted Answer

Lenders accept bank statements, asset depletion, investment income, or traditional W-2 documentation. The focus shifts to overall financial strength rather than just employment income.

Question 3

When does the adjustable rate period begin?

Accepted Answer

Most portfolio ARMs feature an initial fixed period of 3, 5, 7, or 10 years. After that period ends, rates adjust based on index movement plus a lender margin.

Question 4

Can I refinance a Portfolio ARM before it adjusts?

Accepted Answer

Yes, many borrowers refinance during the initial fixed period to lock in long-term rates or access equity. Prepayment penalties are uncommon but should be confirmed upfront.

Question 5

What loan amounts qualify for Portfolio ARMs in Marin County?

Accepted Answer

Portfolio lenders typically start at conforming limits and extend well above $2-3 million. Maximum amounts depend on property value, borrower qualifications, and lender appetite for large exposures.

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