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Orange County is expensive. Fixed-rate loans price out buyers who plan to move or refinance within 5-7 years.
HousingWire just flagged that ARM share is shifting as the 30-year fixed hit 6.57%. Buyers are paying attention to ARMs again — and for good reason.
620+
Min Credit Score
5, 7, or 10 Years
Fixed Period Options
2/2/5
Common Cap Structure
Conforming & Jumbo
Loan Types Available
Most ARMs require a 620+ credit score. Better scores get better margins — that's the spread added to your index rate after the fixed period ends.
Lenders want to see stable income. They qualify you at the fully-indexed rate, not just the teaser rate.
Not every lender offers ARMs. Banks and credit unions often restrict which ARM products they'll write.
As a wholesale broker, we access 200+ lenders. That means more ARM structures — 5/1, 7/1, 10/1 — and real rate competition.
The number that matters most on an ARM isn't the start rate. It's the caps: how much the rate can jump per adjustment and over the loan's life.
A 2/2/5 cap structure means 2% max at first adjustment, 2% per year after, 5% max ever. Know your caps before you sign.
A 30-year fixed locks your rate forever. An ARM locks it for 5, 7, or 10 years — then adjusts annually.
If you're buying in Orange and plan to sell or refi before the fixed period ends, paying the fixed-rate premium makes little sense.
Orange sits in one of California's pricier counties. Higher loan amounts mean the rate gap between ARMs and fixed loans translates to real savings.
Many Orange buyers — move-up buyers, professionals relocating — have defined timelines. An ARM built around that timeline can save thousands.
Depends on the product. A 7/1 ARM holds your rate fixed for 7 years, then adjusts annually after that.
Your rate resets based on an index plus a margin. Your loan's cap structure limits how much it can move.
They carry more payment uncertainty after the fixed period. That risk shrinks if you sell or refinance before the first adjustment.
Yes. Many borrowers start with an ARM and refinance to a fixed rate before the adjustment period hits.
Yes — and they're common. Jumbo ARM buyers in Orange County often save significantly over a 5-7 year hold.
Most lenders start at 620. Scores above 740 typically get the sharpest margins and best cap structures.
Adjustable Rate Mortgages (ARMs) in Orange