Question 1

What happens when my portfolio ARM adjusts?

Accepted Answer

Your rate changes based on an index plus a fixed margin, typically after 3-7 years. Most have 2% per-adjustment caps and 5-6% lifetime caps to limit payment shock.

Question 2

Can I refinance before the rate adjusts?

Accepted Answer

Yes, most borrowers refinance during the fixed period. No prepayment penalty applies after year three with most portfolio ARM lenders.

Question 3

How do portfolio ARMs work for Dana Point investment properties?

Accepted Answer

Lenders typically require 25-30% down and evaluate rental income flexibly. Some accept projected rents rather than requiring two-year rental history.

Question 4

What income documentation do portfolio ARM lenders accept?

Accepted Answer

Options include bank statements, asset depletion, 1099s, or full tax returns. Each lender has different preferences based on their portfolio strategy.

Question 5

Are portfolio ARM rates negotiable?

Accepted Answer

Rate depends on your credit, down payment, and property type. Lenders price these loans individually rather than using rate sheets.

Portfolio ARM Loans in Dana Point: Flexible Financing for Coastal Properties