Question 1

How much can my payment increase after the fixed period ends?

Accepted Answer

Most portfolio ARMs cap rate increases at 2% per adjustment and 5-6% over the loan life. Your lender must disclose these caps before you lock your rate.

Question 2

Can I refinance out of a portfolio ARM before it adjusts?

Accepted Answer

Yes. Most borrowers refinance during the fixed period if rates drop or their income documentation improves enough to qualify for conventional financing.

Question 3

Do portfolio ARMs require full tax returns for self-employed borrowers?

Accepted Answer

Not always. Many lenders offer bank statement options or use a combination of profit and loss statements with fewer years of returns than conventional loans require.

Question 4

What index do Greenfield portfolio ARMs typically use?

Accepted Answer

Most use SOFR or the 1-year Treasury rate plus a margin of 2-3%. Your lender must disclose the specific index and margin in your loan documents.

Question 5

Are portfolio ARMs available for investment properties in Greenfield?

Accepted Answer

Yes. Many local lenders hold portfolio ARMs for 1-4 unit rental properties with 25% down and debt service coverage ratios above 1.15.

Portfolio ARM Loans in Greenfield: Flexible Financing for Complex Scenarios