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Adjustable Rate Mortgages (ARMs) in Marina
Marina attracts military families from Fort Ord and tech workers who relocate frequently. ARMs cut your payment in years 1-7, which fits short ownership timelines.
Former Fort Ord neighborhoods see steady turnover as military families rotate through. A 7/1 ARM makes sense when you'll likely sell before the rate adjusts.
Tech employees transferring to Silicon Valley often use Marina as a stepping stone. Lower initial payments help you save for your next down payment.
You need 620+ credit for most ARMs. Military buyers often qualify with VA loans at even better terms, but ARMs work for civilian purchases too.
Lenders qualify you at the fully-indexed rate, not the initial teaser rate. If the adjusted rate would be 7%, you must afford payments at that level.
Down payments start at 5% on conforming loans. Jumbo ARMs need 10-20% down depending on credit score and debt ratios.
Credit unions serving military members offer competitive ARM rates but limited product variety. National lenders give you more adjustment period options.
We compare 7/1, 5/1, and 10/1 ARMs across 200+ wholesale lenders. Rate spreads between lenders hit 0.375% on the same day for identical scenarios.
Smaller lenders sometimes waive prepayment penalties that larger banks still charge. This matters if you plan to refinance before adjustment.
Most Marina buyers choosing ARMs fall into two camps: military families who know their timeline or professionals buying before relocating to Bay Area jobs.
The 7/1 ARM dominates here because it matches military rotation schedules. The 5/1 saves another 0.125% but feels too tight for most buyers.
Rate caps matter more than initial rates. A 2/2/5 cap structure means rates can jump 2% at first adjustment, 2% each period after, with 5% lifetime max.
Fixed-rate mortgages cost 0.50-0.75% more upfront but eliminate rate risk. On a $600K loan, that's $250/month extra for certainty.
VA loans beat ARMs for military buyers in most cases. Zero down and no MI usually outweigh the ARM rate advantage unless you're maxing DTI.
Jumbo ARMs make sense above $726,200 when you plan to sell within 7 years. Below that threshold, conforming fixed rates often win on total cost.
Marina neighborhoods near Monterey Bay vary widely in price. Former military housing converts to civilian sales regularly, creating inventory churn that favors short-hold strategies.
Proximity to Fort Ord National Monument affects resale timing. Homes near recreation areas sell faster, which matters when you need to exit before rate adjustment.
Monterey County doesn't add city-level transfer taxes, but expect standard California closing costs. ARM closings run identical to fixed-rate transactions.
The 7/1 ARM matches typical rotation schedules. You get 7 years fixed before rates adjust, usually enough time to sell before reassignment.
ARMs typically run 0.50-0.75% below comparable fixed rates. Rates vary by borrower profile and market conditions, so current spreads fluctuate.
Yes, most borrowers refinance or sell before adjustment. Check for prepayment penalties that some lenders charge in years 1-3.
Your rate resets based on an index plus margin, capped by adjustment limits. A 2/2/5 cap means maximum 2% increase at first adjustment.
Jumbo ARMs shine for short-term buyers above $726,200. You need 10-20% down and strong credit, but rates beat jumbo fixed significantly.
The 7/1 costs about 0.125% more but gives two extra years of stability. Most Marina buyers pick the 7/1 to match military schedules.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.