Question 1

How long does the fixed rate last on an ARM?

Accepted Answer

Depends on the product. A 5/1 ARM fixes your rate for 5 years. A 7/1 ARM holds it for 7. After that, it adjusts once per year.

Question 2

What happens to my rate after the fixed period?

Accepted Answer

It adjusts based on a market index plus a lender margin. Annual and lifetime caps limit how much it can move.

Question 3

Can I refinance before my ARM adjusts?

Accepted Answer

Yes. Many borrowers refinance into a fixed loan before the adjustment kicks in. Your timeline and rates at that point will determine if it makes sense.

Question 4

Are ARMs available for Gonzales homes above the conforming limit?

Accepted Answer

Yes — those are jumbo ARMs. Lender requirements are stricter, but we work with wholesale lenders that actively do jumbo ARMs in Monterey County.

Question 5

Do ARMs have prepayment penalties?

Accepted Answer

Most conventional ARMs do not. Always confirm before signing. Portfolio ARMs occasionally carry prepayment terms — ask your broker directly.

ARM Loans in Gonzales, CA — Lower Rates, Smarter Terms