Question 1

How long is the fixed period on an ARM?

Accepted Answer

Common options are 5, 7, or 10 years fixed before the rate adjusts. A 7/1 ARM holds your rate steady for 7 years, then adjusts annually.

Question 2

What happens when my ARM adjusts?

Accepted Answer

Your rate resets based on a market index plus a lender margin. Rate caps limit how much it can move at each adjustment.

Question 3

Can I refinance before my ARM adjusts?

Accepted Answer

Yes. Many borrowers refinance into a new fixed or ARM before the initial period ends. Your options depend on rates and equity at that time.

Question 4

Do ARMs work for jumbo loans in Monterey County?

Accepted Answer

Jumbo ARMs are common here given local price levels. The rate advantage over a 30-year jumbo fixed can be significant.

Question 5

What credit score do I need for an ARM in Sand City?

Accepted Answer

Most lenders require at least 620. Scores above 720 unlock the sharpest initial rates and best cap structures.

Question 6

Is an ARM risky if I plan to stay long-term?

Accepted Answer

It carries more uncertainty than a fixed loan for long holds. If you stay past the fixed period, you're exposed to market rate swings.

ARM Loans in Sand City, CA — Lower Rates, Smarter Strategy